Section 8 Fair Market Rent (FMR) for ZIP 05408 - 2027

Location: Burlington-South Burlington, VT | Metro: Burlington-South Burlington, VT MSA

Investment Score for ZIP 05408

F
Monthly Rent (2BR)
$2,260
Median Price (2BR)
$407,140
1% Rule
0.56%
Annual Yield
6.66%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,620
1 Bedroom$1,790
2 Bedrooms$2,260
3 Bedrooms$2,850
4 Bedrooms$2,970
5 Bedrooms$3,445
6 Bedrooms$3,858
7 Bedrooms$4,167
8 Bedrooms$4,375

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $2,260 $407,140 0.56% F
3BR $2,850 $459,404 0.62% D
4BR $2,970 $542,325 0.55% F
5BR $3,445 $597,590 0.58% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
10,019
Median Household Income
$95,018
Housing Units
4,400
Renter Percentage
26.7%
Occupancy Rate
97.9%
Renter Occupied
1,152

The ZIP code 05408 in Burlington, Vermont, stands out within Chittenden County due to its relatively high median income of $95,018 and median home value of $456,678. With a population of 10,019 residents, 26.7% of whom are renters, it reflects a mix of homeowners and tenants typical of many urban areas.

From a Section 8 perspective, the area presents an interesting dynamic. The Fair Market Rent (FMR) for ZIP 05408 as of fiscal year 2024 is set at $1,840. This figure is notably higher than the average market rent of $1,457, based on Census American Community Survey (ACS) data. Landlords participating in the Section 8 program can expect to receive higher rents than the local market average, making this ZIP code particularly attractive for voucher holders and landlords alike.

The difference between the FMR and the actual market rent indicates that there is a financial incentive for landlords to accept Section 8 vouchers. This is because the gap allows landlords to potentially cover any administrative costs associated with the program while still receiving a rent that is above the typical market rate.

Based on the data available, ZIP 05408 appears to be stable. Its median income and home values suggest a robust local economy where housing remains accessible to both middle-class homeowners and renters, even with the presence of subsidized housing through the Section 8 program.

To summarize, landlords in ZIP 05408 can anticipate a favorable environment for accepting Section 8 vouchers, with the potential to secure higher rental incomes compared to the local market. The economic indicators point towards a stable community, well-suited for long-term investments in rental properties.

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.