Location: Addison County, VT | Metro: Burlington-South Burlington, VT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,580 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
U.S. Census Bureau data (2024)
ZIP 05461, located in Addison County, Vermont, presents itself as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 is set at $1780, which exceeds the current market rent of $1651. This positive spread ensures that landlords can rely on steady, predictable income that is above the local average.
The median home value in ZIP 05461 is $559,115. This high median home value indicates that homeownership is relatively expensive in the area, pushing many residents towards rental properties. As such, the demand for rentals remains robust, supporting the cash-flow anchor designation.
A cash-flow anchor is crucial for any investment portfolio, especially when dealing with government-backed programs like Section 8. It provides a reliable source of income that can offset the risks associated with other types of investments. In this case, the guaranteed higher-than-market rent payments through the Section 8 program make ZIP 05461 an ideal candidate for anchoring cash flow.
The renter share of 15.9% and median income of $109,712 further support this strategy. While the renter share is relatively low compared to urban areas, the high median income suggests that there is a strong financial base among the population. This financial stability means that tenants are more likely to be able to pay their portion of the rent consistently, reducing the risk of default and ensuring a steady cash flow.
In conclusion, ZIP 05461 is best suited as a cash-flow anchor within a Section 8 portfolio due to the favorable spread between FMR and market rent, coupled with the high median home value and stable median income. These factors ensure a reliable and consistent income stream, making it a secure and valuable addition to any investment strategy.
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.