Location: Windsor County, VT | Metro: Windsor County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,470 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 05053 in Vermont reveals two distinct possibilities based on the available data.
In the first scenario, using the annualized Fair Market Rent (FMR) for a 2-bedroom unit at $1,520 (for FY 2026), the gross yield can be calculated. The median home value in ZIP 05053 is $657,068. Given this, the gross yield would be approximately 2.31%. This is derived by dividing the annual rent ($1,520) by the median home value ($657,068).
The second scenario involves market rent, which is currently not available (N/A). Without a specific figure for market rent, it's impossible to provide an exact gross yield for this scenario. However, the absence of market rent data suggests that there might be limited or unreliable information about current rental prices in the area, making the first scenario more practical for investment analysis.
To further clarify, the implied gross-yield from the Section 8 program at $1,520 per month is significantly lower compared to what might typically be expected from market rents in a well-documented area. This low gross-yield reflects the conservative nature of the FMR, which aims to ensure affordability rather than maximize returns.
Given the 12.7% renter density in ZIP 05053, it's important to note that a substantial portion of the population might be looking for affordable housing options. This could mean that Section 8 tenants represent a significant share of potential renters, especially considering the high median home value which likely deters many from buying.
The N/A-day Days on Market (DOM) indicates that there is no recent data on how quickly rental properties are being leased in this area. This lack of data could suggest either a stable market where properties are leased promptly without much fluctuation, or a less active market where data collection is inconsistent. In either case, the reliability of market rent estimates is questionable.
In conclusion, while the market rent scenario remains speculative due to missing data, the Section 8 scenario provides a clear, albeit conservative, gross-yield estimate of 2.31%. This makes the first scenario more realistic for current investment decisions in ZIP 05053, 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.