Real Estate Investing in Derby, Vermont (05855)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 05855 (Derby, VT)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 16.3% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Derby, VT (05855)?
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Market Analysis: 05855 Derby
ZIP 05855 inside Orleans County looks affordable on the surface — median value of $285K — but the discount exists for reasons that a careful buyer should understand before committing.
Rent of $1,026/mo on a $285K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 05855 sits below the stated 0.0% once reality is priced in.
Nearby ZIPs in Derby have seen price recovery that 05855 has not matched. Orleans County data supports the view that the spread is structural rather than temporary.
A substantial renter share of 30% in 05855 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Distressed ZIPs reward experience. impressive returns are possible in 05855, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Derby:
Market Trends
Home Value History (with trend line)
📊 How Does 05855 Compare?
| Metric | 05855 | Derby | Vermont |
|---|---|---|---|
| Home Value | $285,405 | $287,655 | $387,631 |
| 5-Year CAGR | 7.1% | 6.3% | 6.4% |
| Avg Rent | $1,026 | $1,098 | - |
| Cap Rate | 2.8% | 3.0% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 05855 (Derby, VT). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $285,405 |
| Monthly Rent | $1,026 |
| Price-to-Rent | 23.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.3% |
| Cap Rate | 2.8% |
| 5-Year IRR | 9.9% |
📈 Home Appreciation
| 1-Year | +9.3% ▲ |
| 3-Year CAGR | +5.3% ▲ |
| 5-Year CAGR | +7.1% ▲ |
| 10-Year CAGR | +6.1% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.8%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 05855
Population: 7,576
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 05855
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
Frequently Asked Questions
How high is vacancy risk in Derby, VT?
Derby, VT sees elevated vacancy, which is reasonable relative to the broader VT rental market.
How qualified is the tenant pool in Derby, VT?
Derby, VT draws a consistent base of working renters. Demand at the $1,026/mo rent level is reasonable for standard single-family and small multi rentals.
How does Derby, VT stack up for property investment?
With a 3.0/5 investability score, Derby, VT ranks as a solid market for rental property investors. Median prices of $285K and rents of $1,026/mo drive the underlying numbers.
Are landlord laws favorable in Derby, VT?
Derby, VT falls under VT landlord-tenant law, which is balanced. That backdrop makes day-to-day property management reasonable.
What are home prices like in Derby, VT?
Homes in Derby, VT typically sell near $285K. Prices have moved at a 0.0% 5-year CAGR, which reliable long-term demand.
You know 05855 now. You don’t know where it ranks.
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