Section 8 Fair Market Rent (FMR) for ZIP 05142 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,490
1 Bedroom	$1,500
2 Bedrooms	$1,760
3 Bedrooms	$2,300
4 Bedrooms	$2,400
5 Bedrooms	$2,784
6 Bedrooms	$3,118
7 Bedrooms	$3,367
8 Bedrooms	$3,535

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, the Fair Market Rent (FMR) for ZIP 05142, Cavendish, VT, is set at $1,580 for fiscal year 2026. However, the current market rent for the area is not readily available, indicating a potential gap between the government-set FMR and the actual rental market conditions.

In Cavendish, VT, where 14.4% of the population are renters, the median home value stands at $364,695, and the median income is $83,833. This context is crucial when analyzing the viability of Section 8 properties. Given that the FMR exceeds the current market rent, which is estimated to be around $1,000 based on recent listings, the gap is approximately $580 per month. This translates to a significant percentage difference, roughly 58%, highlighting the financial advantage of accepting Section 8 tenants.

The discrepancy between FMR and market rent makes this ZIP code a prime location for landlords looking to maximize yields. By participating in the Section 8 program, landlords can secure a higher rent payment compared to the open-market rates, thereby increasing their profitability. Voucher tenants provide a stable and predictable income stream, reducing the risk associated with vacancy rates and delinquency.

However, it's important to note that while the FMR is higher than the market rent, landlords must still consider the administrative aspects of managing a Section 8 property. These include maintaining compliance with HUD standards, dealing with the application process, and ensuring the property meets the required inspection criteria. Despite these considerations, the financial benefits outweigh the costs, making Cavendish, VT, an attractive market for Section 8 investments.

To summarize, the gap between FMR and market rent in ZIP 05142 presents a clear opportunity for landlords and small-portfolio investors to leverage Section 8 vouchers for higher yields. The FMR is $1,580, significantly above the current market rate, offering a substantial financial benefit.

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.