Section 8 Fair Market Rent (FMR) for ZIP 06031 - 2027

Investment Score for ZIP 06031

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The town of Canaan, Connecticut, represented by ZIP code 06031, is a suburban community situated within the greater Bridgeport-Stamford-Norwalk metropolitan area. It offers a blend of rural charm and easy access to urban amenities, making it an attractive location for both homeowners and renters. This analysis will provide insights into the rental market dynamics, focusing on key metrics such as Fair Market Rent (FMR), market rent, median home values, renter share, days on market (DOM), and median income.

• Fair Market Rent (FMR): The FMR for Canaan, as part of the larger Bridgeport-Stamford-Norwalk metro area for fiscal year 2026, is set at $2,120. This figure represents the maximum amount that low-income families should pay in rent, ensuring affordability while reflecting the local housing market conditions.
• Market Rent: According to the latest data from the Census Bureau's American Community Survey (ACS), the average market rent in Canaan is $1,727. This indicates that the actual rents charged in the area are below the FMR, suggesting a relatively stable and affordable rental market.
• Median Home Value: The median home value in Canaan stands at $553,666. This reflects the typical price range for homeownership, which is significantly higher than the average rent, pointing towards a strong preference for owning property over renting.
• Renter Share: Approximately 18.2% of households in Canaan are renters. This relatively low percentage suggests that the majority of residents prefer to own their homes, which could impact the demand for rental properties.
• Days on Market (DOM): Data for the average number of days properties are on the market before being rented is currently unavailable. This gap in information makes it challenging to assess the speed at which rental units are typically filled in Canaan.
• Median Income: The median household income in Canaan is $106,875. This robust income level supports a healthy rental market, as it implies that tenants can afford higher rents without compromising their living standards.

In summary, the rental market in Canaan, Connecticut, is characterized by a fair balance between affordability and economic stability. With a median income well above the national average, there is a solid financial foundation for maintaining steady rent levels. However, the low renter share and the lack of data on the average days on market indicate that rental properties might face less competition compared to owner-occupied homes. For investors, the opportunity lies in understanding the local preferences and tailoring investment strategies to meet the needs of the 18.2% of renters in the area, while also considering the potential for higher occupancy rates due to the strong economic base.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.