Location: Windham County, VT | Metro: Windham County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
U.S. Census Bureau data (2024)
The ZIP code 05158, located in Windham County, VT, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) set by HUD for the metro area in fiscal year 2026, which is $1,240, and the current market rent of $749. The FMR is designed to ensure that rental properties receive a stable, government-backed income, which is higher than what the local market currently offers. This means that landlords can secure a guaranteed rent that exceeds the typical market rate, providing a solid foundation for predictable cash flow.
In addition, the median home value in ZIP 05158 stands at $280,254. While this figure might seem high compared to some other areas, it's important to note that the median income in this ZIP is $71,875, indicating that residents have the financial capability to afford housing costs. However, the high median home value coupled with a relatively low market rent suggests that many homeowners are renting out their properties at rates below what the government deems fair, thus creating an opportunity for landlords to enter the market with Section 8 vouchers and command higher rents without pricing out potential tenants.
The ZIP code also has a renter share of 8.4%, meaning that nearly one in every twelve households are renters. Although this percentage is not exceptionally high, it does provide a sufficient base of potential tenants for Section 8 properties. Furthermore, the median income supports the notion that there is a steady demand for affordable housing options, which aligns well with the Section 8 program's goal of assisting low-income families. This makes ZIP 05158 particularly suitable for anchoring a portfolio with properties that offer reliable cash flow, backed by the government's commitment to pay a set rent amount.
While appreciation plays and diversifiers have their place in investment strategies, the clear advantage of ZIP 05158 lies in its role as a cash-flow anchor. The substantial difference between the FMR and market rent ensures a steady, above-market income stream, which is crucial for maintaining a robust and consistent financial performance of a landlord's portfolio.
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.