Location: New Haven, 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 | $1,340 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,530 | $211,168 | 0.72% | D |
| 2BR | $1,920 | $375,821 | 0.51% | F |
| 3BR | $2,290 | $456,294 | 0.5% | F |
| 4BR | $2,520 | $569,943 | 0.44% | F |
| 5BR | $2,923 | $626,990 | 0.47% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 06037 (Berlin, CT) for Section 8 investment, follow this decision tree based on the provided data.
1) Does the Fair Market Rent ($1700) for the fiscal year 2024 cover the debt service on a $446,713 property?
No: The fair market rent of $1700 does not clear the debt service on a property valued at $446,713. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property of this value, the combined monthly cost would likely exceed $1700, making it unprofitable under Section 8 without subsidies that cover the gap between rent and these expenses.
Yes: If subsidies are available that bridge the gap between the fair market rent and the debt service, then the answer is yes. However, the raw data shows that $1700 alone is insufficient.
2) Is the market rent ($2,400 ZORI) above, at, or below the Fair Market Rent ($1700)?
Above: The ZORI (Zillow's Observed Rental Index) of $2,400 is significantly above the Fair Market Rent of $1700. This indicates that market conditions favor higher rents, which can be challenging for landlords participating in Section 8 who must adhere to the lower FMR cap. It means that only tenants eligible for Section 8 assistance will find the property affordable, limiting your tenant pool.
At or Below: If the market rent were at or below the FMR, it would align better with Section 8 requirements. However, the data shows the market rent is higher, so this scenario does not apply.
3) Are there enough renters (17.5%) and a low enough Days on Market (N/A - indicating data is not available) to meet demand?
It Depends: With 17.5% of residents being renters, there is a decent base of potential tenants. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly units might rent out. If the rental vacancy rate is low and competition for tenants is high, the 17.5% figure could indicate strong demand. Conversely, if the market is saturated, even this percentage may not ensure sufficient tenant interest.
In conclusion, Berlin, CT (ZIP 06037) presents challenges for Section 8 landlords due to the disparity between the Fair Market Rent and the ZORI. The decision to invest hinges on the availability of subsidies to cover the debt service gap and an assessment of local rental demand beyond the provided data points. Careful consideration of these factors is necessary before proceeding with any purchase.
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.