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 | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 05084 in Vermont reveals several key points. The Fair Market Rent (FMR) for a two-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $1,490 per month. This translates to an annual rental income of $17,880. Given that the median home value is not available, we can only work with the provided FMR to derive the implied gross yield.
In a scenario where a landlord relies solely on Section 8 vouchers, the annualized rental income would be $17,880. If we assume a median home value of approximately $250,000 based on typical values in similar ZIP codes, the implied gross yield would be around 7.15%. This calculation is derived from the formula: Gross Yield = Annual Rental Income / Property Value. However, this figure is speculative due to the lack of precise median home value data for ZIP 05084.
The absence of market rent data makes it difficult to compare the gross yield with non-Section 8 scenarios. Nevertheless, it's important to note that the 0.0% renter density in ZIP 05084 suggests a very low likelihood of finding tenants who are eligible for Section 8 vouchers. Additionally, the 'N/A' day Days on Market (DOM) indicates incomplete data, which further complicates the analysis.
Given these circumstances, the gross yield derived from the FMR is the most concrete figure available. However, it's essential for investors to consider the practical challenges associated with finding Section 8 tenants in this ZIP code. The low renter density implies that landlords might face difficulties in maintaining a steady stream of rental income, thereby affecting the overall cap rate and investment viability.
To summarize, the implied gross yield for a property utilizing Section 8 vouchers in ZIP 05084 is approximately 7.15%, assuming a median home value of $250,000. Investors should be cautious about relying solely on this figure without considering the local rental market dynamics and tenant eligibility issues.
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.