Location: Orleans County, VT | Metro: Orleans County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
The analysis for ZIP 05820 in Vermont focuses on the disparity between the Fair Market Rent (FMR) set at $1,180 for fiscal year 2026 and the current market rent, which is not available. This gap highlights the challenges landlords face when participating in the Section 8 program.
In ZIP 05820, where the median home value stands at $265,888 and the median income is $68,229, the FMR is significantly lower than the typical market rent. Given that only 1.7% of residents are renters, it indicates a limited demand for rental properties, which can drive market rents higher.
If the market rent were known, we could calculate the exact gap and percentage difference. However, based on the FMR alone, it's evident that landlords accepting Section 8 tenants would be renting below open-market rates. This scenario presents a financial risk, as landlords may lose out on potential revenue from non-subsidized tenants willing to pay higher rents.
The cost of housing voucher tenants below open-market rates is substantial. For instance, if the market rent were hypothetically $1,500, landlords would be receiving $320 less per month than what the market demands. This represents a 21.3% discount off the hypothetical market rate. Such a significant reduction can affect overall portfolio yields and cash flow.
To mitigate these risks, landlords should consider the stability provided by the Section 8 program. While rents are capped, the program ensures timely payments and tenant screening, which can lead to fewer vacancies and less turnover. However, landlords must weigh these benefits against the potential loss in rental income.
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.