Location: Rutland County, VT | Metro: Rutland County, VT
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,230 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $243,595 | 0.67% | D |
| 3BR | $1,930 | $269,751 | 0.72% | D |
| 4BR | $2,260 | $262,878 | 0.86% | C |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 05777, centered around West Rutland, VT, presents a significant opportunity for landlords and small-portfolio investors due to the substantial gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,460, while the Census ACS data indicates that the current market rent is $910. This means there is a gap of $550 per month, representing an increase of approximately 60.4% over the market rent.
This scenario favors voucher tenants because it makes the investment a yield play. Landlords can charge a higher rent rate through the Section 8 program without taking on the financial risk typically associated with renting properties at above-market rates. The program ensures that the rent is paid by the government up to the FMR, thus providing a reliable income stream for the landlord.
In West Rutland, where only 14.9% of residents are renters, the demand for rental properties is relatively low. However, the median home value stands at $261,577, and the median income is $64,044, indicating that homeownership is out of reach for many residents. This creates a niche market for affordable rentals, particularly those covered by Section 8 vouchers. By offering properties at the FMR rate of $1,460, landlords can attract tenants who might otherwise struggle to find suitable housing given their income levels.
The cost of housing voucher tenants below open-market rates is minimal for landlords. In fact, it offers a stable and predictable income source, which is beneficial in a community where the majority of people own homes. The high median home value and low percentage of renters suggest that the local rental market is underserved, making Section 8 properties attractive options for those who qualify for assistance.
To summarize, the gap between the FMR and market rent in West Rutland, VT, is $550 per month, or about 60.4% more than the market rate. This makes the ZIP code a prime location for landlords to leverage the Section 8 program, ensuring a steady income while providing affordable housing to those who need it most.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.