Montpelier vs South Burlington: Housing Costs in Vermont
Side-by-side comparison of home prices, mortgage payments, and housing costs between Montpelier and South Burlington, Vermont. Using Vermont's 1.9% property tax rate and $1,100/year insurance. Updated for 2026.
Metric
Montpelier
South Burlington
Median Home Price
$345K
$465K
Population
8,074
20,292
Average Rent
$1,450/mo
$1,850/mo
Est. Monthly Mortgage (P&I)
$1,963/mo
$2,645/mo
Est. Monthly Property Tax
$546/mo
$736/mo
Est. Monthly Insurance
$92/mo
$92/mo
Est. Total PITI
$2,730/mo
$3,647/mo
Price-to-Rent Ratio
19.8
20.9
Verdict
Montpelier edges out South Burlington in affordability, saving you roughly $917/month on total housing costs. Both cities are in Vermont, so property tax rates and insurance costs are the same — the difference comes down to home prices and what you get for your money in each market.
Monthly Payment Comparison
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Vermont's 1.9% property tax rate.
Montpelier
Home Price$345,000
Down Payment (10%)$34,500
Loan Amount$310,500
Monthly P&I$1,963
Monthly Property Tax$546
Monthly Insurance$92
Monthly PMI$129
Total PITI$2,730/mo
Annual property tax: $6,555
South Burlington
Home Price$465,000
Down Payment (10%)$46,500
Loan Amount$418,500
Monthly P&I$2,645
Monthly Property Tax$736
Monthly Insurance$92
Monthly PMI$174
Total PITI$3,647/mo
Annual property tax: $8,835
Buying in Montpelier saves you approximately $917/month ($11,004/year) compared to South Burlington, based on median home prices with identical loan terms.
Which City Is Better For...
First-Time Buyers
Montpelier is the better choice for first-time buyers, with a median price of $345K versus $465K in South Burlington. That's $120K less to save for a down payment. You'd need roughly $12K for an FHA 3.5% down payment in Montpelier, compared to $16K in South Burlington. Vermont offers the VHFA MOVE Mortgage program ($5K–$15K DPA) which applies in both cities.
Real Estate Investment
Montpelier has the better price-to-rent ratio at 19.8x versus 20.9x in South Burlington. A lower ratio generally signals better rental income relative to purchase price. Average rent in Montpelier is $1,450/month on a $345K median home, making it a stronger candidate for buy-and-rent investors.
Families
South Burlington (pop. 20,292) offers more amenities, schools, and services typical of a larger city, while Montpelier (pop. 8,074) may offer a quieter, more community-oriented lifestyle. Families on a budget may prefer Montpelier, where lower housing costs free up more income for childcare, education, and savings.