Location: Essex County, VT | Metro: Essex County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 05903 is centered around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as set for metro fiscal year 2026, stands at $1,040, whereas the Census ACS data indicates an average market rent of only $99. This creates a stark contrast where the FMR is $941 higher, representing a 950% increase over the market rent.
Given that the FMR exceeds the market rent, it positions properties in this ZIP code as attractive opportunities for landlords and small-portfolio investors looking to capitalize on the guaranteed income stream from voucher tenants. The higher FMR means that landlords can potentially receive more than what the local market dictates, thus improving their rental yields significantly. This is particularly compelling considering the relatively low proportion of renters in the area, at just 7.3%, which suggests that there is less competition for rental properties.
Moreover, the median home value of $217,326 and the median income of $56,397 provide additional context. These figures indicate that while homes are moderately priced, the income levels suggest that many residents might struggle to afford market-rate rents without assistance. Therefore, the presence of voucher tenants can be seen as a stabilizing factor for rental properties, ensuring a steady income flow even in areas where the overall rental demand might be lower due to the high percentage of homeowners.
However, it's important to note that while the FMR provides a higher rental rate, the actual management of voucher tenants comes with its own set of requirements and potential costs. Landlords must ensure that their properties meet HUD standards, and there may be administrative tasks involved in managing these units. Despite these considerations, the substantial difference between FMR and market rent makes this ZIP code a strong candidate for yield plays, especially for investors willing to navigate the specifics of the housing voucher program.
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.