Section 8 Fair Market Rent (FMR) for ZIP 05460 - 2027

Location: Burlington-South Burlington, VT | Metro: Burlington-South Burlington, VT MSA

FY 2027 Fair Market Rent Rates

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

The analysis of the Section 8 cap-rate picture for ZIP code 05460 in Vermont reveals some key insights into potential investment opportunities for landlords and small-portfolio investors.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 05460 for fiscal year 2024 is set at $1570 per month. This annualizes to $18,840. Given the median home value is currently not available, we must rely on other metrics to infer the gross yield. In a scenario where the median home value is hypothetically comparable to the average home values seen in similar markets, the gross yield would be derived from the rental income relative to that value. However, without specific data on median home values, a precise calculation cannot be made.

Market rents for ZIP 05460 are also not available, making it difficult to compare the Section 8 rates against typical market rates. This lack of data means that the gross yield based on market rents cannot be accurately determined either.

To provide a realistic assessment, consider the following: the renter density is unknown, as is the days on market (DOM) for properties. These factors are crucial in determining the actual performance and occupancy rates of rental units. Therefore, while the Section 8 rate provides a guaranteed income stream, the absence of data on market rents and property values limits the ability to fully assess the comparative gross yield.

In conclusion:

The Section 8 rate of $1570 per month for a two-bedroom unit translates to an annual rental income of $18,840.
A direct comparison to market yields is not possible due to missing data on median home values and market rents.
The lack of information on renter density and DOM makes it challenging to determine the likelihood of achieving full occupancy and the speed at which properties can be leased.

Given these constraints, the Section 8 rate offers a stable income source, but the overall investment attractiveness requires further data to assess the comparative gross yield against market conditions.

Data Sources: FMR data from HUD (2027).

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.