Location: Burlington-South Burlington, VT | Metro: Burlington-South Burlington, VT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,600 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,830 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
The potential risks for investing in Section 8 properties in ZIP code 05402, located in an unspecified area of Vermont, must be carefully considered. Tenant turnover can be a significant issue, especially when comparing the local market rent to the Federal Market Rent (FMR) of $1950 for fiscal year 2024. High turnover rates mean increased costs for screening new tenants and performing maintenance between tenancies.
Vacancy exposure is another concern. With no data available on the average days on market (DOM), it's difficult to predict how long a property might remain vacant. Vacant units represent lost rental income and additional expenses such as utilities and insurance that continue to accrue during this period.
Deferred maintenance is a risk factor often associated with Section 8 properties due to the limitations on the amount landlords can charge for rent. The lack of specific data on typical home values and median income in ZIP 05402 makes it challenging to assess the financial capacity of landlords to keep up with maintenance without relying heavily on rental income. This could lead to deteriorating property conditions if landlords are unable to invest sufficiently in upkeep.
However, these risks are offset by the high concentration of renters in the area. While the exact percentage of the renter share is not provided, high renter density typically indicates a higher demand for housing vouchers. This means there is likely a steady pool of potential Section 8 tenants, reducing the risk of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027).
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.