Location: Orange County, VT | Metro: Caledonia County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,160 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 05046, located in Vermont, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,230, while the Census ACS reports the market rent at $1,000. This represents a gap of $230, or 22.8%, indicating that the FMR exceeds the market rent.
This scenario makes ZIP 05046 an attractive yield play for landlords and small-portfolio investors. With the FMR higher than the market rent, landlords can potentially charge more for properties designated for voucher tenants without exceeding the allowable rent limits. This means that landlords can achieve rental yields above the local average, benefiting from the federal subsidy program designed to help low-income families afford decent housing.
In the broader context of Vermont, where only 10.5% of residents are renters, and the median home value stands at $299,022, the median income of $84,375 suggests that many homeowners can afford higher mortgage payments compared to rental rates. However, for those relying on Section 8 vouchers, the lower market rent of $1,000 provides an opportunity to offer affordable housing options while still achieving a competitive return on investment.
The cost of housing voucher tenants below open-market rates is minimal in this case. Landlords who accept Section 8 vouchers in ZIP 05046 can expect a steady stream of income, guaranteed by the government, which covers the difference between the tenant's contribution and the full FMR. This stability is particularly valuable in a market where rental demand is relatively low compared to ownership rates.
To summarize, the explicit gap between FMR and market rent in ZIP 05046 presents a compelling opportunity for landlords and investors to leverage the Section 8 program for higher yields, all while providing affordable housing options to eligible tenants. The financial benefits are clear, offering a reliable source of income that aligns with the economic realities of Vermont.
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.