Location: Essex County, VT | Metro: Essex County, VT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP code 05905 for Section 8 properties hinges on three key questions:
To determine if the FMR of $1,130 clears the debt service, calculate the monthly mortgage payment based on the property value. Assuming a typical interest rate and loan term, the monthly mortgage payment for a $319,633 property could range widely depending on the specifics of the loan. For instance, with a 30-year fixed-rate mortgage at 4%, the monthly principal and interest payment would be approximately $1,530. This amount does not include property taxes, insurance, and maintenance costs, which can add significantly to the total monthly debt service. Therefore, if the total debt service exceeds $1,130, the answer is No.
The market rent of $1,031 is below the FMR of $1,130. This indicates that the rental market in ZIP 05905 is slightly undervalued compared to the government's assessment. However, this alone does not dictate investment decisions; it must be considered alongside other factors such as demand.
In ZIP 05905, only 7.7% of residents are renters, indicating a relatively low demand for rental properties. The days on market (DOM) being listed as N/A suggests incomplete data, making it difficult to assess how quickly properties are rented out. Given the low percentage of renters, the answer is No, unless there are significant changes in the local rental market dynamics or additional demand factors not captured in this dataset.
If the debt service is higher than the FMR, do not proceed with the investment. If the market rent is below the FMR but demand is strong, it might still be viable. In ZIP 05905, however, the low percentage of renters combined with insufficient DOM data leans towards a No. Ensure you gather comprehensive local market insights before making a final decision.
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.