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 | $1,390 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,490 | $573,438 | 0.43% | F |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 05660 for Section 8 properties, follow this decision tree:
Step 1: Determine if the Fair Market Rent (FMR) of $1,720 can cover the debt service on a property valued at $504,168. This requires calculating the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly payment would be approximately $2,445. Since the FMR of $1,720 does not exceed the debt service of $2,445, the answer is No. A landlord cannot rely solely on Section 8 rents to cover the cost of owning a property valued at $504,168.
If the property value were lower, such that the FMR could cover the debt service, proceed to the next step. For example, if the property value was $300,000, the monthly payment would be about $1,425, which is below the FMR. In this case, you would then ask:
Step 2: Is the market rent of $992 above, at, or below the FMR? The market rent is significantly below the FMR of $1,720, indicating that Section 8 rents are higher than what the market currently offers. This makes Section 8 properties potentially attractive for landlords who want to ensure a steady income stream. However, this alone does not guarantee a good investment; proceed to the third step.
Step 3: Evaluate the rental demand. In ZIP 05660, 11.9% of residents are renters. The lack of data on days on market (DOM) means that while there is some rental demand, the speed at which units are rented cannot be determined. Given the limited data, the conclusion is It Depends. Landlords must consider additional factors such as the local vacancy rate, competition from other housing programs, and the potential for rent increases in the future.
To summarize, in ZIP 05660, Section 8 investments do not clear the debt service for a $504,168 property. While Section 8 rents exceed market rates, the decision to invest hinges on the overall rental demand and other local economic conditions. Landlords should seek further information before making a final decision.
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.