Section 8 Fair Market Rent (FMR) for ZIP 06021 - 2027

Location: Northwest Hills Planning Region, CT | Metro: Northwest Hills Planning Region, CT

Investment Score for ZIP 06021

Monthly Rent (2BR)

$1,780

Median Price (2BR)

$345,106

1% Rule

0.52%

Annual Yield

6.19%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,240
1 Bedroom	$1,460
2 Bedrooms	$1,780
3 Bedrooms	$2,350
4 Bedrooms	$2,690
5 Bedrooms	$3,120
6 Bedrooms	$3,494
7 Bedrooms	$3,774
8 Bedrooms	$3,963

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,780	$345,106	0.52%	F
3BR	$2,350	$451,915	0.52%	F
4BR	$2,690	$559,669	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,494

Median Household Income

$111,250

Housing Units

703

Renter Percentage

8.4%

Occupancy Rate

85.1%

Renter Occupied

Colebrook, Connecticut, located in the zip code 06021, is a small town with a population that values homeownership over renting. The town offers a tranquil environment with access to natural landscapes, making it attractive to families and individuals seeking a peaceful lifestyle.

The Fair Market Rent (FMR) for the metro area including Colebrook is set at $1,860 per month for fiscal year 2026, indicating the government's benchmark for rental costs.
The actual market rent for the area stands at $1,333 according to recent Census American Community Survey (ACS) data, suggesting a gap between the FMR and what tenants are currently paying.
The median home value in Colebrook is $418,928, reflecting the overall cost of homeownership in the area.
Renters make up only 8.4% of the total housing units, which is a low percentage compared to many other towns, pointing towards a strong preference for owning property over renting.
The median household income in the area is $111,250, indicating a relatively affluent community capable of supporting higher rents or mortgage payments.
Data on the number of days on market (DOM) for rental properties is not available, which could imply a stable market where rentals are quickly filled or a lack of significant turnover in the rental market.

Given the low renter share and the significant gap between the Fair Market Rent and the actual market rent, there is potential for rental property owners to increase their rents closer to the FMR without losing tenants. However, the limited rental market suggests that opportunities for new rental investments might be constrained. Investors should focus on enhancing property value through improvements to attract the higher-income households present in the area, ensuring a steady cash flow. Overall, Colebrook presents a niche investment opportunity with a focus on quality over quantity when it comes to rental properties.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.