Location: Orange County, VT | Metro: Orange County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
To determine if a landlord should buy a property in ZIP code 05039 for Section 8 purposes, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,520 per month cover the debt service on a property priced at $306,956?
Yes: The FMR of $1,520 per month is sufficient to clear the debt service on a property valued at $306,956. This indicates that the rental income from a Section 8 tenant can meet the mortgage obligations.
No: The FMR of $1,520 per month does not clear the debt service on a property priced at $306,956. In this case, relying solely on Section 8 tenants would result in insufficient income to cover the mortgage payments.
It Depends: This scenario is unlikely given the provided figures. However, it would depend on the specific terms of the mortgage, such as interest rate and loan duration.
2) Is the market rent above, at, or below the FMR?
Above: The market rent is higher than the FMR of $1,520. Landlords can potentially earn more by renting to non-Section 8 tenants. However, this does not preclude Section 8 investment if the landlord prefers the stability of government-backed rents.
At: Market rent equals the FMR. There is no financial incentive to rent outside of the Section 8 program, making it a neutral choice.
Below: Market rent is lower than the FMR. Section 8 can provide a better return compared to the local market, making it a favorable option for investment.
Note: The market rent data for ZIP 05039 is currently unavailable.
3) Are there enough Section 8 tenants to support the demand, considering 5.2% of the population are renters and the Days on Market (DOM) is not available?
Yes: With 5.2% of the population being renters, and assuming a reasonable number of days on market, there could be sufficient demand for Section 8 properties. However, without DOM data, we cannot definitively assess the speed at which properties are rented.
No: If the percentage of renters is low and the DOM is high, indicating slow rental rates, then there might not be enough demand to justify a Section 8 investment.
It Depends: Given the lack of DOM data, the decision hinges on the landlord's tolerance for vacancy periods and their assessment of local rental trends.
In summary, the decision to invest in ZIP 05039 for Section 8 purposes hinges on the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the availability of Section 8 tenants. The first two points require straightforward calculations, while the third point requires additional research into local rental dynamics.
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.