Location: Windsor County, VT | Metro: Windsor County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,610 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,600 |
| 5 Bedrooms | $3,016 |
| 6 Bedrooms | $3,378 |
| 7 Bedrooms | $3,648 |
| 8 Bedrooms | $3,830 |
U.S. Census Bureau data (2024)
ZIP 05035, located in Windsor County, VT metro, presents a compelling opportunity for inclusion in a Section 8 portfolio strategy, particularly as a cash-flow anchor. The Federal Market Rent (FMR) for the area is set at $1,680 for fiscal year 2026, which exceeds the current market rent of $1,325 by a significant margin. This $355 spread provides a strong buffer against potential rent shortfalls, ensuring that landlords receive above-market rents for their properties. Additionally, the median home value of $409,289 suggests a stable housing market, reducing the risk of property devaluation.
The high FMR compared to market rent means that landlords can secure a reliable source of income through Section 8 vouchers, even if there are fluctuations in the local rental market. This makes ZIP 05035 an attractive option for those looking to stabilize their cash flow with a dependable revenue stream. While the ZIP does not offer significant appreciation potential due to the lack of data on price-cut shares and days on market (DOM), the stability provided by the Section 8 program and the positive cash flow spread make it a valuable addition to any investor's portfolio.
The 5.8% renter share indicates that a majority of the residents in ZIP 05035 prefer homeownership, which aligns with the higher median home value. However, this also means that there is a niche market for rental properties, especially those participating in the Section 8 program. With a median income of $70,670, many residents may find themselves eligible for the Section 8 voucher program, providing a steady pool of tenants who can afford the higher FMR rates.
In summary, ZIP 05035 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Its high FMR relative to market rent ensures a positive spread, while the stable housing market and presence of eligible Section 8 tenants provide long-term security and predictability for landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.