Location: Essex County, VT | Metro: Caledonia County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,400 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $2,810 |
| 5 Bedrooms | $3,260 |
| 6 Bedrooms | $3,651 |
| 7 Bedrooms | $3,943 |
| 8 Bedrooms | $4,140 |
U.S. Census Bureau data (2024)
The ZIP code 05837 presents an interesting balance between yield potential and market stability, making it neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone, but rather a middle-ground opportunity.
On the yield axis, the market shows strong rental income potential relative to the Federal Market Rent (FMR). The FMR for the metro area in fiscal year 2026 is set at $1,220, while the market rent stands at $1,712. This indicates that landlords can charge above the federally determined fair market rate, potentially increasing their cash flow by $492 per month over the FMR. However, the median home value of $231,429 suggests a higher initial investment compared to lower-value areas, which could affect the overall yield percentage when considering property costs.
Moving to the stability axis, the ZIP code reveals mixed signals. With 20.1% of residents being renters, the demand for rental properties is relatively low, indicating less stability in finding tenants. Unfortunately, the data on days on market (DOM) is not available, which would have been crucial in assessing how quickly properties can be rented out. On a positive note, the average income of $60,781 provides some assurance that renters can afford higher rents, supporting the possibility of maintaining steady cash flows despite the lower percentage of renters.
To conclude, ZIP 05837 offers a moderate yield opportunity with above-average rental rates but requires careful consideration due to the relatively low percentage of renters. Landlords should focus on tenant retention strategies and possibly target higher-income renters to leverage the stability offered by the average income figure. This area represents a balanced market where strategic management can turn the potential into solid returns.
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.