Location: Addison County, VT | Metro: Addison County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,470 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $3,530 |
| 5 Bedrooms | $4,095 |
| 6 Bedrooms | $4,586 |
| 7 Bedrooms | $4,953 |
| 8 Bedrooms | $5,201 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 05473 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,960, while the Census ACS reports the market rent at $1,375. This creates a gap of $585, which translates to a 42.5% difference between what the government deems fair and what the market currently demands.
In this scenario where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage the Section 8 program to achieve higher yields on their rental properties. By participating in the Section 8 Housing Choice Voucher program, landlords receive a subsidy that bridges the gap between the lower market rent and the higher FMR, ensuring a consistent and reliable income stream that outperforms the local rental market average.
The wider context of ZIP 05473 in Vermont reveals that only 6.6% of residents are renters, indicating a predominantly owner-occupied housing market. The median home value stands at $503,859, suggesting a relatively affluent community. However, the median household income is $99,919, which may limit the ability of some residents to afford homeownership, thereby creating a niche for affordable rental housing.
The cost of housing voucher tenants below open-market rates is effectively subsidized by the federal government, making it financially viable for landlords to offer units at rates that are attractive to low-income families. This subsidy not only supports affordability but also provides a predictable income source, crucial for investment planning and property management in an area where rental demand is lower compared to ownership.
For investors looking to capitalize on the Section 8 program in ZIP 05473, the key is understanding how to navigate the local rental market dynamics. With the FMR significantly above the market rent, there's a clear opportunity to enhance investment returns through participation in the voucher program. Landlords should prepare to meet the requirements of the program, which include maintaining properties to certain standards and adhering to the payment schedule provided by the government.
To summarize, the gap between FMR and market rent in ZIP 05473 presents a compelling yield opportunity for those willing to engage with the Section 8 Housing Choice Voucher program. This can be particularly advantageous given the specific economic conditions of the area, including its low rental population percentage and median income levels.
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.