Location: Washington County, VT | Metro: Washington County, VT
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 | $1,300 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,870 | $332,353 | 0.56% | F |
| 3BR | $2,340 | $444,726 | 0.53% | F |
| 4BR | $2,460 | $523,394 | 0.47% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 05602 in Montpelier, Vermont, hinges on its financial metrics related to rental yields and market stability. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,570. This figure represents the maximum rent that can be charged for Section 8 housing, which is higher than the local market rent of $1,309. This suggests a potential for higher rental income when compared to the general market rates, indicating a relatively high-yield environment.
However, the median home value in ZIP 05602 is $419,348, which is a significant investment for property acquisition. Coupled with this, the average income level is reported at $81,320. While these numbers do not directly indicate the days on market (DOM), they provide context about the economic conditions. The percentage of renters in the area stands at 33.8%, which is not exceptionally high but also not low, suggesting a moderate demand for rental properties.
The combination of a higher FMR relative to market rent and a moderate percentage of renters points towards a market that offers steady cash flow rather than high-yield speculative opportunities. Given the lack of data on days on market, it's challenging to fully assess the stability of the market. However, the presence of a significant portion of homeowners (approximately 66.2%) and the relatively stable income levels suggest that there is a reasonable level of stability in the rental market.
In conclusion, ZIP 05602 is best classified as a steady-cashflow zone. The slightly elevated FMR provides a reliable income source for landlords, while the moderate renter population and stable income levels contribute to a predictable and consistent rental market. This makes it a suitable choice for small-portfolio investors looking for dependable returns without the volatility associated with high-yield markets.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.