Location: Rutland County, VT | Metro: Rutland County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,230 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
U.S. Census Bureau data (2024)
ZIP 05742, located in Rutland County, Vermont, serves as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the substantial spread between the Fair Market Rent (FMR) for the metro area in fiscal year 2026, which stands at $1,220, and the lack of available market rental rates. The median home value of $358,820 suggests that property values are relatively stable and high, making it a secure investment for long-term cash flow.
The high FMR compared to the potential market rate indicates that properties in ZIP 05742 can be rented out at rates higher than the average market rate, ensuring a steady stream of income for landlords and small-portfolio investors. This ZIP code does not present significant opportunities for appreciation, as evidenced by the absence of specific data regarding price-cut shares and days on market (DOM).
Additionally, the low renter share of 0.0% implies that there is minimal competition from other rental properties, further securing the cash flow potential. However, this also means that ZIP 05742 does not offer much diversity in terms of rental markets. The median income of $66,250 supports the notion that residents are likely to qualify for Section 8 assistance, given that the program targets individuals with incomes up to 50% of the area's median income.
In conclusion, ZIP 05742 is best suited as a cash-flow anchor in a Section 8 portfolio due to the guaranteed higher rental rates through the FMR and the stability of the real estate market. Landlords and investors should focus on the consistent income generation rather than speculative appreciation plays.
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.