Location: Addison County, 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 | $1,430 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $2,020 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,020 | $569,706 | 0.35% | F |
| 3BR | $2,500 | $814,917 | 0.31% | F |
| 4BR | $2,940 | $1,023,993 | 0.29% | F |
| 5BR | $3,410 | $1,179,599 | 0.29% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 05445, Charlotte, VT, stands at $144,375. This figure is crucial when considering the local rental market, where the average market rate is $1,738 per month according to the Census ACS. Given these numbers, it's clear that a significant portion of the households can comfortably afford the market rate without financial strain. The Financial Market Rent (FMR) set at $2,120 for fiscal year 2024 provides an even higher benchmark, indicating that there is room for landlords to charge slightly above the market rate without deterring potential tenants.
With only 4.5% of the population being renters and a total population of 3,916, the rental market is relatively small. This means that competition among landlords could be fierce, especially if they aim to attract the limited number of cash-paying tenants who might be willing to pay closer to the FMR rather than the current market rate. However, the majority of tenants are likely to be comfortable with paying around $1,738 per month, which is well below the FMR threshold.
The disparity between the median income and the market rate highlights an affordability gap that favors both landlords and tenants. For landlords, this suggests that setting rents at or slightly above the market rate will ensure a steady stream of tenants capable of meeting their obligations. Additionally, the option to participate in voucher programs remains attractive due to the guaranteed payments at the higher FMR rate, though it may come with additional administrative burdens.
Takeaway: Landlords in Charlotte, VT, should consider a balanced approach between traditional cash-paying tenants and those using vouchers. The robust median income supports market-rate rents, while the higher FMR for voucher recipients offers stability and potentially higher returns. However, the smaller tenant pool means landlords must be competitive and flexible in their pricing strategies to maximize occupancy 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.