Location: Washington County, VT | Metro: Orange 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 | $1,200 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $301,176 | 0.57% | F |
| 3BR | $2,160 | $323,486 | 0.67% | D |
| 4BR | $2,270 | $367,114 | 0.62% | D |
| 5BR | $2,633 | $381,926 | 0.69% | D |
U.S. Census Bureau data (2024)
Investors looking into ZIP code 05663, Northfield, Vermont, might have several reservations about investing in the area through the Section 8 program. One primary concern is whether the Fair Market Rent (FMR) of $1,340 for the fiscal year 2026 will sufficiently cover the mortgage payments on a home valued at $322,972. To determine this, one must consider the typical interest rates and loan terms available. For instance, with a 30-year fixed-rate mortgage at an average rate of 4%, the monthly principal and interest payment would be around $1,540. This indicates that the FMR does not fully cover the mortgage, leaving a gap of approximately $200 per month.
A second objection is the relatively low percentage of renters in the area, which stands at 24.6%. This figure suggests that the rental market is not as robust compared to urban centers where renter populations might be higher. However, it's important to note that the percentage of renters does not necessarily correlate with the demand for affordable housing. In rural areas such as Northfield, the demand for affordable rentals can still be strong due to limited housing options and lower income levels among residents.
The final concern is whether the voucher amount will keep pace with the market rents, which are currently at $1,022. The Section 8 program adjusts its voucher amounts annually based on HUD's fair market rent data. While this adjustment aims to reflect changes in local rental markets, it often lags behind actual market conditions. In ZIP 05663, if market rents rise faster than the annual adjustment, landlords might find themselves receiving less than the market value for their properties. Conversely, if market rents remain stable or increase slowly, the current voucher amount of $1,022 should suffice.
To summarize, while the FMR of $1,340 does not entirely cover the mortgage on a home priced at $322,972, it still provides a substantial portion of the required monthly payment. The percentage of renters at 24.6% might seem low, but it reflects a steady demand for affordable housing in a rural setting. Lastly, the voucher amount is likely to adjust annually, but whether it keeps pace with market rents depends on how quickly those rents change in the future. These points should help clarify the investment landscape in Northfield, Vermont, for potential Section 8 landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.