Location: Burlington-South Burlington, VT | Metro: Burlington-South Burlington, VT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,410 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
U.S. Census Bureau data (2024)
ZIP 05446, located in Colchester, Vermont, within the Burlington-South Burlington MSA, presents a strategic opportunity for landlords and small-portfolio investors looking to balance their investments with a focus on either cash flow stability or diversification. Given the specific metrics available, this ZIP code is best categorized as a cash-flow anchor.
The Federal Market Rent (FMR) for ZIP 05446 in fiscal year 2024 is set at $1750 for a one-bedroom unit. Comparatively, the current market rent for similar units stands at $2,225. This indicates that there is a substantial gap between the government-subsidized rental rates and the actual market rates. For landlords participating in the Section 8 program, this spread means they can rely on a stable, albeit lower, cash flow from tenants covered under the voucher program. The difference of $475 per month, when aggregated across multiple units, can provide a steady revenue stream that is less volatile than purely market-rate rentals.
Moreover, the median home value in ZIP 05446 is $481,059, which suggests that the area is not particularly prone to rapid appreciation. While an appreciation play might offer long-term gains through property value increases, ZIP 05446's metrics point more towards a scenario where modest appreciation can be expected, with a 0.2% price-cut share indicating a competitive but not overheated market. The 24-day Days on Market (DOM) figure further supports this, showing that properties are typically sold relatively quickly, without significant price adjustments.
ZIP 05446 also offers a notable diversification element with a 25.8% renter share and a median income of $97,475. These figures suggest that while a significant portion of the population rents, they have a higher-than-average income, which could support a mix of Section 8 and market-rate rentals. However, the primary recommendation remains focused on utilizing ZIP 05446 as a cash-flow anchor due to the favorable spread between FMR and market rent, ensuring a predictable income stream essential for portfolio stability.
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.