Location: Windham County, VT | Metro: Bennington County, VT
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,820 | $435,444 | 0.42% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 05363 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,350, whereas the Census ACS reports the market rent at $1,108. This discrepancy amounts to a difference of $242, which represents an increase of approximately 21.8% over the market rent.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors can capitalize on this situation as a yield play. By participating in the Section 8 program, they can secure rental income that is higher than what the open market would typically offer. This means that even though the market rent is lower, the guaranteed payment through the voucher program ensures a higher return on investment compared to non-subsidized tenants.
The broader context of ZIP 05363 shows that 26.0% of residents are renters, indicating a substantial portion of the population relies on rental housing. Additionally, the median home value stands at $429,260, suggesting a relatively high property value in the area. With a median income of $68,843, many residents may find it challenging to afford housing without assistance, making the Section 8 program particularly relevant for ensuring affordability.
Landlords should consider the benefits of this gap when deciding whether to participate in the Section 8 program. The higher FMR compared to the market rent allows them to maintain or even slightly increase their rental rates while still being attractive to voucher holders. This can be especially advantageous given the high median home values and the economic conditions of the area, where the average income might not sufficiently cover the cost of housing without subsidies.
However, there are also considerations regarding the administrative aspects of managing Section 8 properties. While the financial gap offers a compelling reason to engage with the program, landlords must weigh this against the potential challenges such as inspections, compliance, and the administrative burden associated with subsidized housing. Despite these factors, the financial advantage provided by the FMR being above the market rent makes the Section 8 program a viable option for maximizing returns in ZIP 05363.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.