Section 8 Fair Market Rent (FMR) for ZIP 05478 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 05478 (Saint Albans, VT) for Section 8 purposes, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $1,640 cover the debt service on a property valued at $371,622?

• If Yes: The FMR of $1,640 is sufficient to meet the debt service requirements, assuming typical financing terms. This means that a landlord can expect the rental income to adequately cover mortgage payments and other associated costs.
• If No: The FMR of $1,640 is insufficient to cover the debt service on a property valued at $371,622. Landlords should consider properties with lower purchase prices or seek areas with higher FMRs.

Step 2: How does the market rent of $1,227 compare to the FMR?

• If Above: The market rent exceeds the FMR, indicating that landlords might be able to charge more than the FMR and still attract tenants. This scenario is favorable for landlords looking to maximize their rental income beyond what Section 8 subsidies provide.
• If At or Below: The market rent is at or below the FMR, meaning landlords will likely need to rely solely on the FMR to set their rental rates. This situation is less favorable for those aiming to exceed Section 8 subsidy levels but still viable if the FMR covers debt service.

Step 3: Is there enough demand with 31.9% of residents being renters and no available data on days on market (DOM)?

• If It Depends: With 31.9% of residents renting, there is a significant portion of the population seeking housing, which could indicate demand. However, the lack of DOM data makes it challenging to assess how quickly units are rented out. Landlords must weigh the percentage of renters against the potential vacancy risk due to limited market data.

In summary, the decision to invest in ZIP 05478 hinges on whether the FMR can support the debt service, the comparison between market rent and FMR, and the assessment of rental demand based on the percentage of renters. Given the FMR of $1,640 and the median home value of $371,622, landlords must carefully evaluate their financing options and the local rental market dynamics before making an investment decision.

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.