Location: Windham County, VT | Metro: Windham County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 05346 reveals a stark contrast between the federally mandated Fair Market Rent (FMR) and the actual market conditions. For a two-bedroom unit, the FMR set at $1,400 per month for fiscal year 2026 provides an annualized rental income of $16,800. This translates into an implied gross yield of approximately 4.74% when compared to the median home value of $354,375. The calculation is straightforward: ($16,800 / $354,375) * 100 = 4.74%. However, the market rent of $810 per month, derived from Census ACS data, results in an annualized rental income of $9,720, which implies a gross yield of about 2.74%.
To determine which scenario is more realistic, consider the 17.2% renter density in ZIP 05346. This figure suggests that a significant portion of the housing stock is owner-occupied, potentially limiting the pool of tenants who might be eligible for Section 8 housing vouchers. Additionally, the lack of data on days on market (DOM) indicates uncertainty regarding how quickly properties can be rented out under the Section 8 program. Given these factors, the market rent scenario is likely more reflective of the current reality for landlords and small-portfolio investors in ZIP 05346. While the higher gross yield offered by the FMR scenario is tempting, it does not account for the potential challenges in finding and retaining tenants through the Section 8 program. Therefore, investors should prepare for a gross yield closer to the market rent scenario of 2.74%, unless they have access to a steady stream of Section 8 tenants, which would push the yield towards the 4.74% mark.
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.