Location: Windsor County, VT | Metro: Rutland County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,140 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
U.S. Census Bureau data (2024)
Skeptical investors considering ZIP 05772 might question whether the Fair Market Rent (FMR) of $1,180 for the fiscal year 2026 will sufficiently cover the mortgage on a home valued at $340,041. To address this concern, let's break down the numbers. Assuming a fixed-rate mortgage at a typical interest rate of around 4%, the monthly payment on a $340,041 home would be approximately $1,650. This means that the FMR of $1,180 falls short by about $470 per month. However, it's important to note that property values can fluctuate, and additional income sources such as laundry facilities or parking fees could help bridge the gap.
A second objection could be the relatively low renter demand indicated by the rental occupancy rate of 14.6%. This suggests that only a small portion of homes in the area are rented out, which might make finding tenants challenging. Yet, it's crucial to consider the broader context. A lower rental rate does not necessarily imply weak demand; it could also indicate a strong homeownership culture. Additionally, the median household income in ZIP 05772 is $79,200, suggesting that residents have the financial capacity to afford higher rents. This economic stability could attract a steady stream of renters willing to pay the FMR.
The final objection relates to the sustainability of voucher usage. With market rents at $1,140, investors might wonder if the housing voucher program will keep up with these rates. The HUD estimates suggest that the FMR is expected to increase slightly over the next few years, but it's essential to monitor local trends. While the federal government adjusts voucher amounts annually based on cost-of-living changes, local variations can still impact the actual value of these vouchers. Therefore, while the current data indicates that vouchers are sufficient to cover the majority of market rents, future adjustments will need to be closely watched.
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.