Location: Rutland County, VT | Metro: Addison County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,250 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
U.S. Census Bureau data (2024)
The ZIP code 05733 presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant concern due to the discrepancy between the market rent of $1,045 and the Fair Market Rent (FMR) of $1,440 for fiscal year 2026, which is based on the metro area. This gap suggests that tenants might struggle to cover the higher FMR, leading to increased turnover rates and potential difficulties in maintaining steady cash flow.
Vacancy exposure is another critical issue. With no data available on days on market (DOM), it's challenging to predict how quickly units can be filled, especially if the higher FMR deters potential tenants. A prolonged period of vacancy can severely impact profitability and cash reserves.
The deferred-maintenance exposure is also noteworthy. Given the typical home value of $310,956 and a median income of $68,831, landlords must be prepared to handle maintenance costs without relying on tenants' ability to contribute significantly. The income-to-rent ratio indicates that tenants may have limited funds for maintenance deposits or repairs beyond their monthly rental payments.
However, these risks are somewhat mitigated by the high renter density in the area. With 14.2% of the population being renters, there is likely a strong demand for rental properties, including those that accept Section 8 vouchers. This high renter share can provide a stable pool of potential tenants, reducing the overall risk of vacancy and increasing the likelihood of finding long-term residents.
In conclusion, the verdict for a first-time Section 8 landlord in ZIP 05733 is moderate risk. While there are considerable challenges, the high renter density offers some assurance of tenant availability and demand.
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.