Location: Rutland County, VT | Metro: Rutland County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,500 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 05738 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent based on Census ACS data. The FMR for the metro area in fiscal year 2026 is set at $1,720, while the current market rent stands at $1,438. This means that there is a $282 difference, representing a 19.6% gap between what landlords can charge under the Section 8 program and the prevailing market rates.
Given that the FMR exceeds the market rent, it presents an opportunity for landlords and small-portfolio investors to leverage this situation for higher yields. Voucher tenants, who are guaranteed rental payments through the government's Section 8 program, allow landlords to charge closer to the FMR rate without the risk of non-payment that might come with open-market tenants. In ZIP 05738, where only 4.5% of the population are renters, landlords can secure a steady income stream above the local market average by accepting Section 8 vouchers.
The median home value in this ZIP code is $337,950, indicating a relatively stable housing market. With a median income of $95,000, many residents may find it challenging to afford homeownership, making rental properties, especially those supported by Section 8, a viable option. By accepting Section 8 vouchers, landlords can fill units that might otherwise sit empty due to the limited rental market, thereby increasing their overall portfolio yield.
However, it's important to note that while the FMR provides a higher rental rate, landlords must also consider the administrative costs associated with participating in the Section 8 program. These include background checks, property inspections, and ongoing compliance requirements. Despite these costs, the potential for a higher yield—$282 more per month or 19.6% above market rates—makes the ZIP code 05738 particularly attractive for landlords looking to maximize returns on their investment properties.
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.