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 | $1,190 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,860 | $308,124 | 0.6% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP code 05736 does not work favorably for landlords. The Fair Market Rent (FMR) for the area, set at $1,350 for fiscal year 2026, is significantly higher than the actual market rent of $1,102 based on Census ACS data. This discrepancy suggests that landlords may struggle to attract tenants willing to pay the FMR, especially if they are relying on Section 8 vouchers.
Acquisition of properties in ZIP 05736 is moderately affordable. With a median home value of $293,441, potential investors can acquire homes at a reasonable cost. However, the lack of data on days on the market (DOM) and the percentage of homes that had their prices cut indicates uncertainty regarding how quickly homes sell and the competitiveness of the market. Landlords should be cautious about overpaying for properties without this critical information.
Tenant demand in ZIP 05736 is relatively low given the small population size of 408 individuals, with only 50.2% being renters. This means there are approximately 205 potential rental households, which could limit the pool of available tenants. Additionally, the small number of residents may make it challenging to sustain a steady stream of applicants, particularly for Section 8 units.
In conclusion, ZIP code 05736 presents a challenging investment environment for landlords and small-portfolio investors. The disparity between the FMR and market rent, combined with limited tenant demand and uncertain market conditions, makes it less favorable for acquiring new rental properties. While property acquisition is affordable, the risks associated with finding and retaining tenants at the FMR level outweigh the benefits.
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.