Location: Washington County, VT | Metro: Orange County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
U.S. Census Bureau data (2024)
A landlord considering ZIP 05649 for Section 8 investments must follow a structured decision-making process based on the following criteria:
1. Debt Service Coverage Ratio (DSCR): The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $1,370. To determine if this amount clears the debt service on a property valued at $292,297, we need to calculate the DSCR. Assuming a typical mortgage rate of 4%, the annual mortgage payment would be approximately $14,800. Therefore, the monthly mortgage payment would be around $1,233. Given that the FMR is $1,370, it exceeds the monthly mortgage payment, resulting in a positive cash flow. This means that the answer to the first question is Yes; the FMR does cover the debt service.
2. Market Rent Comparison: The market rent for the area is currently not available. Without this information, it's impossible to compare the FMR against the market rent. This makes the second question It Depends. If the market rent is higher than the FMR, then Section 8 properties might struggle to compete with the private rental market. Conversely, if the market rent is lower or equal to the FMR, then Section 8 could be a viable option.
3. Rental Demand: In ZIP 05649, 26.1% of residents are renters. Additionally, the days on market (DOM) for rental properties is not specified. With only the percentage of renters available, we can infer that there is a moderate level of demand. However, without knowing the DOM, it's unclear how quickly units are being rented. This makes the third question It Depends as well. If the DOM is low, it suggests strong demand, making Section 8 investment more attractive. If the DOM is high, it indicates weak demand, which could make investing less favorable.
To summarize, the decision to invest in Section 8 properties in ZIP 05649 hinges on the answers to these questions. The financials indicate a Yes, but market conditions and rental demand require further investigation before making a final 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.