Section 8 Fair Market Rent (FMR) for ZIP 05862 - 2027

Location: Caledonia County, VT | Metro: Caledonia County, VT

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,330
1 Bedroom$1,390
2 Bedrooms$1,670
3 Bedrooms$2,220
4 Bedrooms$2,550
5 Bedrooms$2,958
6 Bedrooms$3,313
7 Bedrooms$3,578
8 Bedrooms$3,757

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
361
Median Household Income
$122,917
Housing Units
279
Renter Percentage
20.1%
Occupancy Rate
67.7%
Renter Occupied
38

The ZIP code 05862 represents a small, tight-knit community with a total population of 361 residents. This area is predominantly owned, with only 20.1% of the population being renters. The median income for residents in this ZIP code is notably high at $122,917, suggesting a well-off demographic. However, the lack of data on median home values indicates that this might be an area where homes are either privately held or not frequently listed.

Moving into the economic analysis of renting in this ZIP code, the Fair Market Rent (FMR) set by HUD for the metro area in fiscal year 2026 is $1,040. In contrast, the actual market rent, according to the Census Bureau's American Community Survey (ACS), stands at $829. This discrepancy suggests that there is room for growth in rental prices, aligning with the higher income levels of the residents. Landlords can potentially increase rents closer to the FMR without significantly impacting occupancy rates.

Given these characteristics, ZIP 05862 is better suited for a hands-on value-add buyer rather than a hands-off voucher operator. The relatively low percentage of renters and the potential for increasing rental prices indicate that active management could yield higher returns. A value-add strategy would involve improving property conditions or amenities to justify higher rents, which would be more effective here than simply relying on government subsidies. The affluent resident base supports the feasibility of such a strategy, as they are likely to be willing to pay premium rents for enhanced living conditions.

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.