Location: Rutland County, VT | Metro: Rutland 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 | $1,520 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,000 | $319,544 | 0.63% | D |
| 3BR | $2,380 | $333,667 | 0.71% | D |
| 4BR | $2,790 | $401,303 | 0.7% | D |
| 5BR | $3,236 | $449,611 | 0.72% | D |
U.S. Census Bureau data (2024)
The real estate landscape in Castleton, Vermont (ZIP 05735), presents a nuanced scenario for both landlords and small-portfolio investors. With a median home value of $304,517, the area reflects a stable housing market, but the absence of percentage reductions in listings and the median days on market (DOM) indicates a lack of recent volatility and suggests a steady demand for properties.
The setup implies that homeowners and sellers have maintained pricing power, which could continue over the next 12-24 months given the current stability. However, without historical context or comparative data from previous periods, it's challenging to assert definitive trends regarding future price adjustments.
On the rental side, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $1,740, while the current market rent stands at $1,363 according to the Census American Community Survey. This gap signals potential upward pressure on rents, aligning with the broader national trend of rising rental costs. Landlords in Castleton may see opportunities to gradually increase rents to approach the FMR level, enhancing cash flow and property values over time.
For long-hold investors, the realistic appreciation thesis leans towards modest growth. The combination of stable home values and the potential for rent increases suggests that properties in Castleton can retain their value and offer steady returns. However, rapid appreciation is unlikely given the limited data indicating significant market shifts. Investors should focus on the reliability of cash flows and the conservative growth in property values, rather than expecting high returns typical of more dynamic markets.
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.