Location: Burlington-South Burlington, VT | Metro: Burlington-South Burlington, VT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,730 |
| 1 Bedroom | $1,910 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $3,040 |
| 4 Bedrooms | $3,170 |
| 5 Bedrooms | $3,677 |
| 6 Bedrooms | $4,118 |
| 7 Bedrooms | $4,447 |
| 8 Bedrooms | $4,669 |
U.S. Census Bureau data (2024)
The ZIP code 05495 in Vermont presents an interesting scenario for real estate investors looking into the Section 8 market. With a Fair Market Rent (FMR) of $2,210 for fiscal year 2024, it aligns closely with the local market rent of $2,216. This indicates that the rental income potential through Section 8 is nearly on par with what you could achieve in the private market, which is a positive sign for yield.
However, the median home value of $585,390 suggests that the area is relatively expensive compared to other regions. This higher cost can impact the overall profitability if acquisition and maintenance costs are significantly higher. Despite this, the FMR provides a solid benchmark for potential rental income, making it a decent yield opportunity.
Regarding stability, the ZIP code has 23.9% of residents as renters, indicating a moderate level of demand for rental properties. The lack of data on days on market (DOM) makes it difficult to assess how quickly properties might be rented out, but the average household income of $107,054 is robust and supports the idea that tenants can afford their rent payments consistently. This strong income figure contributes positively to the stability of the rental market, as it suggests a lower risk of default.
Given these figures, ZIP 05495 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The close alignment between the FMR and market rent, combined with the solid average household income, points to a stable rental environment where consistent cash flow is likely. While the median home value is high, the investment would still generate reliable returns based on the rental income supported by the local economy.
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.