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 | $1,350 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,930 | $294,875 | 0.65% | D |
| 3BR | $2,480 | $370,351 | 0.67% | D |
| 4BR | $2,550 | $393,580 | 0.65% | D |
U.S. Census Bureau data (2024)
The real estate landscape in Swanton, Vermont (ZIP 05488) presents a nuanced picture for landlords and small-portfolio investors. With a median home value of $346,801, the market signals stability and modest potential for growth. The fact that only 0.2% of listings have reduced their prices suggests that sellers are holding firm on their asking prices, indicating strong pricing power. However, the median days on market (DOM) being listed as 'N/A' points to a low volume of sales, which could mean that homes are either selling very quickly or there's limited activity.
The Federal Market Rent (FMR) for ZIP 05488 in fiscal year 2024 is set at $1,690, while the current market rent stands at $1,286. This discrepancy suggests an opportunity for rental income growth, as landlords can potentially increase rents closer to the FMR without losing tenants to the broader market. The gap between FMR and actual market rent also indicates that the area may be undervalued, providing a window for investment at below-market rates.
For long-term investors, the setup in Swanton implies a cautious approach to appreciation expectations. Given the stable median home values and the limited reduction in listing prices, it's reasonable to assume steady but conservative price increases. The absence of significant DOM data suggests that rapid price appreciation is unlikely due to low transaction volumes, which can limit market momentum. However, the potential for rental income growth offers a compelling alternative investment strategy, particularly for those looking to generate cash flow rather than rely solely on capital appreciation.
Investors should consider the following:
In summary, the data points to a market where maintaining current values is assured, with opportunities for modest growth in both property value and rental income. This makes Swanton a suitable location for investors seeking stability and incremental gains over a longer horizon.
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.