Location: Hartford-West Hartford-East Hartford, 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 | $1,050 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $334,406 | 0.45% | F |
| 3BR | $1,800 | $442,787 | 0.41% | F |
| 4BR | $2,000 | $555,505 | 0.36% | F |
| 5BR | $2,320 | $592,225 | 0.39% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP 06043, Bolton, CT, reveals significant differences between the federally determined Fair Market Rent (FMR) and the actual market rent. Using the annualized figures for a 2-bedroom apartment, the FMR set at $1620 per month translates to an annual rental income of $19,440. In contrast, the Census ACS reports a market rent of $1,127 per month, equating to an annual rental income of $13,524.
To derive the gross yield, we must compare these annual incomes to the median home value of $440,418. For the FMR scenario, the gross yield is calculated as follows:
$19,440 / $440,418 = 0.0441 or 4.41%
Conversely, using the market rent figure, the gross yield drops to:
$13,524 / $440,418 = 0.0307 or 3.07%
Given the low renter density of 12.0%, it's important to consider the likelihood of maintaining a steady stream of rental income. The N/A-day DOM (days on market) indicates that there is insufficient data to determine how quickly properties are rented out, which adds another layer of uncertainty to the investment decision.
The higher gross yield based on FMR is attractive, but it's crucial to recognize that this figure is based on federal guidelines rather than local market conditions. Landlords should be cautious about relying solely on FMR as it does not always reflect the true rental market dynamics. The lower gross yield derived from the market rent is more reflective of the current economic environment in Bolton, CT, and is likely a more realistic scenario for long-term investment planning.
In conclusion, while the Section 8 program offers a gross yield of 4.41% based on FMR, the actual market conditions suggest a more modest gross yield of 3.07%. Given the low renter population and lack of DOM data, the latter scenario should be considered more prudent for investment decisions.
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.