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 | $1,090 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $220,880 | 0.71% | D |
| 3BR | $1,860 | $301,371 | 0.62% | D |
| 4BR | $2,050 | $318,499 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 06051 in New Britain, CT, provides a detailed insight into investment opportunities. To calculate the gross yield, we annualize the two-bedroom Fair Market Rent (FMR) and Zillow's Observed Rental Index (ZORI).
The annualized FMR for a two-bedroom apartment is $16,320 ($1360 x 12 months). Given the median home value of $280,734, the implied gross yield for a Section 8 property is approximately 5.8%. This calculation assumes that the property is rented at the FMR rate for Section 8 tenants.
In contrast, the annualized market rent based on ZORI is $17,676 ($1,473 x 12 months). Using the same median home value, the implied gross yield for a market-rate rental property is about 6.3%.
Evaluating these yields against the local market conditions, the higher gross yield of 6.3% seems more realistic. The renter density in New Britain stands at 68.9%, indicating a strong demand for rental properties. However, the lack of specific days-on-market (DOM) data makes it difficult to assess how quickly properties are leased at market rates versus Section 8 rates.
Despite the slightly lower gross yield, Section 8 properties offer stability due to government subsidies and guaranteed payments. Market-rate rentals might generate higher returns, but they also come with greater risk, such as tenant turnover and vacancy periods. Therefore, while the gross yield comparison suggests a higher potential return on market-rate rentals, the choice ultimately depends on the investor's risk tolerance and investment goals.
For landlords and small-portfolio investors considering New Britain, the gross yield range of 5.8% to 6.3% reflects the balance between the safety of Section 8 tenancy and the higher returns of market-rate rentals. This analysis should help guide decisions based on the specific needs and preferences of individual investors.
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.