Location: Rutland County, VT | Metro: Rutland County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,220 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap-rates for ZIP code 05759 reveals an interesting picture when comparing Federal Market Rent (FMR) to market rent. For a two-bedroom unit, the annualized FMR as set by HUD for fiscal year 2026 is $16,560 ($1,380 per month), while the Census ACS data indicates a market rent of $12,756 ($1,063 per month).
To derive the gross yield, we compare these rental figures to the median home value of $314,409. The implied gross yield based on the FMR would be approximately 5.27%, calculated by dividing the annual rent by the property value. In contrast, the gross yield based on the market rent would be around 4.06%. These figures represent the potential income relative to the investment in a property.
Given the 18.5% renter density in ZIP 05759, it's important to note that the actual occupancy rate could affect the viability of these yields. However, the data does not provide Days on Market (DOM) information, which would typically help assess how quickly properties are rented out. Without this detail, we can still infer that the higher FMR yield is more attractive for landlords and small-portfolio investors looking to participate in the Section 8 program.
The 5.27% gross yield from the FMR scenario provides a stronger financial incentive compared to the 4.06% from market rent. This makes the FMR scenario more realistic for those interested in maximizing their income from rental properties in ZIP 05759. It's worth noting that while the FMR offers a higher yield, participation in the Section 8 program comes with its own set of regulations and requirements that must be considered.
In summary, for a two-bedroom property in ZIP 05759, the annualized FMR of $16,560 implies a gross yield of 5.27%, whereas the market rent of $12,756 suggests a gross yield of 4.06%. The higher yield from the FMR scenario is more likely to appeal to investors, especially considering the relatively low renter density in the area.
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.