Location: Rutland County, VT | Metro: Rutland County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
U.S. Census Bureau data (2024)
In ZIP code 05737, understanding the economics of Section 8 housing is crucial for landlords and small-portfolio investors. The Section 8 program operates under a formula where the government subsidizes a portion of the rent for eligible low-income tenants. For a two-bedroom apartment in this ZIP, the SAFMR (Small Area Fair Market Rent) is set at $1,330 for fiscal year 2026. This figure represents the maximum amount the government will pay towards rent for a unit of this size.
The local market rent, according to Census ACS data, averages $1,550 per month. This means that landlords can charge up to this amount, but the government will only cover up to $1,330. The difference must be paid by the tenant, based on their income level. Typically, the tenant is responsible for paying 30% of their adjusted monthly income towards rent.
To illustrate, if a tenant's monthly income is $1,000, they would pay 30% of this, which is $300, towards the rent. The remaining $1,030 would come from the government subsidy, bringing the total rent to $1,330. If the landlord charges the full market rate of $1,550, then the tenant would need to make up the difference of $220 out of pocket, in addition to their $300 payment, totaling $520.
Section 8 also includes utility allowances, which vary by location and can affect the overall reimbursement to the landlord. In ZIP 05737, these allowances might help cover some of the tenant's additional costs, but they do not increase the SAFMR for the property.
Given the SAFMR of $1,330 and the local market rent of $1,550, there is a reimbursement gap of $220 per month for a two-bedroom apartment. This means landlords receive $220 less than the market rate when renting to a Section 8 tenant. However, the stability of rental income and the reduced vacancy risk often make up for this shortfall. Landlords should carefully consider their expenses and expected returns before deciding whether to participate in the Section 8 program.
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.