Location: Windsor County, VT | Metro: Windsor County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,470 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 05067 in Vermont reveals some interesting dynamics when comparing the federal market rent (FMR) for a 2-bedroom unit against the median home value.
In FY 2026, the 2BR FMR for the metro area is set at $1,520 per month. This translates to an annual rental income of $18,240. Given the median home value of $746,281, the implied gross yield from this scenario is approximately 2.44%. The calculation is straightforward: divide the annual rental income by the property's value. This yield provides a baseline for evaluating the potential returns from renting to Section 8 tenants.
However, the lack of specific market rent data for ZIP 05067 means we cannot provide a precise comparison with non-Section 8 rental rates. In the absence of this information, it's challenging to determine how much higher the gross yield might be for market-rate rentals. Nonetheless, the current FMR-based yield serves as a critical reference point for landlords and small-portfolio investors considering participation in the Section 8 program.
Given the 10.5% renter density in ZIP 05067, it's evident that the majority of homeowners prefer to live in their properties rather than rent them out. This low rental rate could suggest that market rents might be lower than expected, potentially closer to the FMR. However, without a definitive market rent figure, this remains speculative.
The days on market (DOM) data being listed as N/A further complicates the analysis. Typically, DOM would offer insights into how quickly properties are rented, impacting vacancy rates and, consequently, net operating income (NOI). Without this metric, we can't accurately predict the speed at which properties might transition from vacant to occupied, which is crucial for understanding cash flow and investment viability.
In summary, while the FMR-based gross yield of 2.44% offers a clear starting point for evaluating Section 8 investments in ZIP 05067, the absence of market rent data and DOM makes it difficult to draw a comprehensive comparison. Investors should consider these factors carefully and conduct their own detailed analyses before making decisions.
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.