Location: Lamoille County, VT | Metro: Lamoille County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,580 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 05652 revolves around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,770, whereas the Census American Community Survey (ACS) indicates a market rent of $1,442. This creates a gap of $328, representing a 22.75% difference between the two figures.
Given that the FMR exceeds the market rent, properties participating in the Section 8 program can become a yield play. Landlords and small-portfolio investors receive a higher rental income compared to the open-market rates, thereby increasing their potential returns. The guaranteed payment structure, which covers the difference between the FMR and what the tenant can afford based on their income, ensures steady cash flow. In ZIP 05652, where only 22.4% of residents are renters, and the median home value stands at $299,001, the opportunity to secure a stable rental income through Section 8 can be particularly appealing.
The median income in the area is $79,063, which suggests that many local residents might struggle to find affordable housing without assistance. Consequently, the demand for subsidized housing is likely to remain robust. By accepting Section 8 tenants, landlords can capitalize on this demand, receiving rents closer to the FMR rather than the lower market rate. This scenario allows for better financial performance and stability in an otherwise competitive rental market.
However, it's important to note that while the higher FMR provides a greater yield, there are also considerations regarding property maintenance and management. The Housing Authority may require adherence to certain standards, and landlords must ensure the property remains in good condition to continue receiving the higher subsidy payments. Despite these requirements, the financial benefits of the Section 8 program in ZIP 05652 make it a compelling option for landlords seeking to maximize their investment returns.
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.