Location: Waterbury-Shelton, CT | Metro: Hartford-West Hartford-East Hartford, CT MSA
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 | $1,710 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,450 |
| 3 Bedrooms | $2,920 |
| 4 Bedrooms | $3,220 |
| 5 Bedrooms | $3,735 |
| 6 Bedrooms | $4,183 |
| 7 Bedrooms | $4,518 |
| 8 Bedrooms | $4,744 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,960 | $202,744 | 0.97% | C |
| 2BR | $2,450 | $332,852 | 0.74% | D |
| 3BR | $2,920 | $508,898 | 0.57% | F |
| 4BR | $3,220 | $726,291 | 0.44% | F |
| 5BR | $3,735 | $1,172,463 | 0.32% | F |
U.S. Census Bureau data (2024)
ZIP code 06032 in Farmington, CT, is a suburban area with a total population of 19,135. The neighborhood is predominantly owner-occupied, with only 27.3% of residents being renters. This indicates a community where homeownership is valued, and the local economy supports higher living standards, reflected in the median household income of $140,912. The median home value in the area is $479,840, suggesting a robust housing market and a preference for larger, more expensive properties.
From an investment perspective, the rental market dynamics are crucial. The Fair Market Rent (FMR) for ZIP 06032, as determined by HUD for fiscal year 2024, is set at $2,290. In contrast, the Zillow Observed Rent Index (ZORI) indicates that the average market rent is $2,500. This discrepancy means that Section 8 vouchers can cover approximately 91.6% of the market rent, leaving a small gap that landlords must fill. However, given the high median income in the area, this gap is manageable and does not significantly impact the overall profitability of renting properties under the Section 8 program.
The decision between a hands-off voucher operator and a hands-on value-add buyer depends on the landlord's goals and resources. For those looking to minimize effort and risk, the hands-off approach might be suitable due to the low vacancy rates and stable demand for affordable housing. The relatively small difference between the FMR and ZORI suggests that there is little financial incentive to actively manage properties beyond ensuring compliance with HUD requirements.
On the other hand, a hands-on strategy could be more rewarding for investors willing to put in the time and effort to improve property values. Given the affluent nature of the neighborhood, there is potential to enhance property quality and increase rents above the ZORI, thus capturing additional revenue. However, such an approach requires a deeper understanding of the local market and the ability to execute value-add strategies effectively.
In conclusion, ZIP 06032 presents a favorable environment for Section 8 investments, characterized by a strong local economy and a moderate demand for rental housing. Landlords should consider their investment philosophy and operational capabilities before deciding whether to adopt a hands-off or a more active management style.
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.