Location: Northwest Hills Planning Region, CT | Metro: Northwest Hills Planning Region, CT
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,380 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $330,812 | 0.6% | F |
| 3BR | $2,620 | $407,081 | 0.64% | D |
| 4BR | $2,990 | $492,160 | 0.61% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 06027, located in Hartland, Connecticut, within the Northwest Hills Planning Region and part of the larger CT metro area, reveals several key points for potential landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $1,650. In comparison, the market rent as per the Census ACS data stands slightly higher at $1,667. This indicates that the rent set by HUD aligns closely with the actual market conditions, offering a realistic expectation for rental income without significant discrepancies.
Moving on to the affordability of acquisition, the median home value in ZIP 06027 is $406,361. Given the lack of specific data on days on market (DOM) and the percentage of homes that require price cuts, it's challenging to provide a detailed assessment. However, the median home value suggests that purchasing properties in this area would be moderately expensive, particularly considering the typical investment returns expected from rental properties.
The third consideration is tenant demand. With a population of 1,193 and only 5.7% of residents being renters, the pool of potential tenants is relatively small. This low renter share could make it difficult to find and retain tenants, especially in a smaller community where vacancies can be harder to fill compared to densely populated areas.
In summary, while the rent math aligns well with the market expectations, the high median home value and limited tenant demand present challenges for investors looking to acquire and manage properties in ZIP 06027. The financial viability of such investments hinges on finding cost-effective acquisition opportunities and effectively managing a small rental market. Investors should proceed with caution, ensuring thorough due diligence and possibly seeking alternative investment strategies or locations to maximize returns.
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.