Location: Burlington-South Burlington, 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)
ZIP 05458, located within the Burlington-South Burlington, VT MSA metro area, serves as a strong cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 05458 in fiscal year 2024 is set at $1540, which exceeds the current market rent of $1363 by a significant margin. This spread indicates that landlords can expect higher rental income compared to market rates when participating in the Section 8 program.
The median home value in ZIP 05458 stands at $495,713, suggesting a relatively stable housing market. However, the focus here is on rental properties, where the guaranteed income from the Section 8 program can provide a steady cash flow. Landlords benefit from the government subsidy, ensuring timely payments and reducing the risk of vacancy, which is particularly advantageous given the higher FMR compared to market rates.
This ZIP code is not an appreciation play due to the lack of specific data on price-cut shares and days on market (DOM), which are key indicators of property value growth. Instead, the primary value proposition lies in its role as a cash-flow anchor. The 13.3% renter share and median income of $101,728 further support this classification. While the renter share is moderate, the high median income suggests a robust local economy capable of sustaining higher rents, especially those supported by the Section 8 program.
In summary, ZIP 05458 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The guaranteed higher rental income through the FMR, combined with a stable housing market and a healthy local economy, makes it an attractive option for landlords seeking reliable returns on their investment properties.
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.