Location: Orange County, VT | Metro: Caledonia County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
The classification of ZIP code 05081 in Vermont hinges on the balance between yield and stability. With a Fair Market Rent (FMR) of $1,150 for the fiscal year 2026, compared to a market rent of $1,021, there is a clear opportunity for higher rental yields. This discrepancy suggests that properties in this area can command rents above the typical market rate, indicating a potentially lucrative investment for those willing to navigate the Section 8 program.
The median home value of $253,437 provides context for the capital investment required. Given the FMR, landlords can expect to achieve a monthly rental income that exceeds the average market rate, enhancing the overall yield on their investment. However, the stability of this market must also be considered. The renter population constitutes 33.8% of the total population, which is relatively low but still significant enough to support a rental business. The lack of data on days on market (DOM) could imply either a stable housing demand or an underdeveloped local real estate market, making it difficult to assess turnover rates without additional research.
The median household income of $55,804 offers insight into the economic stability of the area. This figure suggests that tenants have a reasonable income level to sustain their rent payments, contributing to the stability of cash flow for landlords. However, the income level does not necessarily correlate directly with the ability to pay higher rents; therefore, the success of rental properties will largely depend on the effectiveness of the Section 8 program in covering the increased rent costs.
In summary, ZIP 05081 presents a scenario that leans towards a high-yield market due to the favorable FMR compared to market rent. However, the stability aspect is less clear due to limited data on DOM and a moderate percentage of renters. For landlords and small-portfolio investors, this ZIP code could be considered a moderate-risk, high-reward investment, particularly if they are well-versed in the intricacies of the Section 8 program and prepared to manage potential fluctuations in tenant turnover and income levels.
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.