Location: Lamoille County, VT | Metro: Burlington-South Burlington, VT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,350 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 05444 reveals a significant difference between using the Fair Market Rent (FMR) and the market rent figures. With an annualized 2BR FMR of $1560 for FY 2024, the gross yield can be calculated by dividing the annual rent by the median home value. For ZIP 05444, the median home value is $433,429. Thus, the gross yield based on the FMR would be approximately 0.36%.
In contrast, using the market rent figure of $1,155 from the Census ACS provides a different perspective. The gross yield here is calculated similarly, resulting in a gross yield of about 0.27%. This lower gross yield reflects the actual rental market conditions, suggesting that the FMR-based yield is potentially inflated compared to what landlords might expect in reality.
Given the 13.1% renter density in the area, it's important to note that the demand for rental properties, particularly those participating in the Section 8 program, may not be as high as in denser urban areas. This factor should be considered when evaluating the potential returns on investment. Additionally, the lack of data on the number of days on market (DOM) for rental listings means we cannot accurately assess how quickly these properties might be leased. However, the low renter density implies that competition among tenants could be less intense, possibly affecting the speed at which units are filled.
Basing investment decisions on the more realistic market rent figure of $1,155, rather than the higher FMR, would result in a more conservative estimate of potential returns. This approach aligns better with the actual economic conditions of ZIP 05444, where the median home value significantly outpaces the rental income available through the Section 8 program. Landlords and small-portfolio investors should consider these figures carefully when deciding whether to participate in the Section 8 program in this ZIP code.
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.