Location: Burlington-South Burlington, VT | Metro: Burlington-South Burlington, VT MSA
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 | $1,730 |
| 1 Bedroom | $1,910 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $3,040 |
| 4 Bedrooms | $3,170 |
| 5 Bedrooms | $3,677 |
| 6 Bedrooms | $4,118 |
| 7 Bedrooms | $4,447 |
| 8 Bedrooms | $4,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,410 | $325,712 | 0.74% | D |
| 3BR | $3,040 | $542,234 | 0.56% | F |
| 4BR | $3,170 | $752,531 | 0.42% | F |
| 5BR | $3,677 | $825,562 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of South Burlington, VT (ZIP 05403) reveals critical insights for landlords and small-portfolio investors. First, the rent math does not favor landlords. The Fair Market Rent (FMR) set at $2120 for FY 2024 is significantly lower than the market rent, which stands at $2,533 according to ZORI. This gap indicates that landlords may struggle to cover costs and maintain profitability based on government-subsidized rates.
Second, acquiring properties in South Burlington is relatively affordable. With a median home value of $480,517, potential investors can secure homes without overextending their budgets. Additionally, the average Days on Market (DOM) is only 19 days, suggesting a brisk sales pace. The low price-cut share of 0.1% further supports the idea that homes are selling close to their listed prices, making it an attractive area for property acquisition.
Third, there is strong tenant demand. The population of 20,614 includes a significant 38.6% renter share. This high percentage of renters indicates a robust market for rental properties. Landlords can expect a steady pool of potential tenants, which is crucial for maintaining occupancy rates and ensuring consistent income streams.
In conclusion, while the rent math presents a challenge due to the disparity between FMR and market rent, the affordability of property acquisition and the strong tenant demand make South Burlington a viable investment opportunity. Investors should carefully consider their cost structures and seek ways to maximize efficiency to overcome the limitations posed by subsidized rental rates.
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.