Location: Burlington-South Burlington, 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 | $1,390 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,480 | $350,951 | 0.71% | D |
U.S. Census Bureau data (2024)
To classify ZIP code 05459 in Vermont, we need to analyze it based on yield and stability. The yield is determined by comparing the Fair Market Rent (FMR) of $1510 for the fiscal year 2024 against the median home value of $333,591. Stability factors include the percentage of renters at 23.6%, the average income at $88,646, and the days on market (DOM) which is not available.
The FMR of $1510 indicates that rental properties can be leased at this rate, providing a consistent revenue stream. Given the median home value of $333,591, the rental yield is relatively low, suggesting that this area is not ideal for high-yield investments typical of flip-style markets. However, the rental price is still significant compared to the average income of $88,646, indicating that renters might find it challenging to afford homeownership, thus supporting a stable rental demand.
With 23.6% of residents being renters, the market shows a moderate level of stability. This figure suggests a reasonable portion of the population relies on rentals, but it's not so high that it would indicate an unstable market where fluctuations in rental demand could be problematic. The lack of data on days on market makes it difficult to assess how quickly rental properties can be filled or how long homes stay on the market before selling, which would normally provide insight into market liquidity and stability.
In conclusion, ZIP 05459 leans towards a steady-cashflow zone rather than a high-yield/low-stability market. The relatively low rental yield in comparison to the median home value does not support aggressive flipping strategies. Instead, the moderate renter percentage and average income suggest a market that provides reliable, if not exceptionally high, returns on investment. Landlords and small-portfolio investors should expect consistent cash flow with limited risk of sudden changes in occupancy rates or rental prices.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.