Location: Northwest Hills Planning Region, CT | Metro: Northwest Hills Planning Region, CT
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 | $1,100 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $343,666 | 0.46% | F |
| 3BR | $2,090 | $437,451 | 0.48% | F |
| 4BR | $2,390 | $526,905 | 0.45% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 06063, which encompasses Barkhamsted, CT, within Litchfield County and the Northwest Hills Planning Region, reveals a favorable environment for cashflow generation. The HUD Fair Market Rent (FMR) for the area is set at $1,760 per month for FY 2026, covering the broader CT metro scope. In contrast, the Census American Community Survey (ACS) reports an average market rent of $1,164, indicating that voucher tenants will cashflow significantly at the HUD FMR rate.
To further analyze the investment potential, consider the median home value in ZIP 06063, which stands at $429,870. This figure allows us to derive a rent-to-price ratio of approximately 0.41%, calculated by dividing the annualized FMR ($21,120) by the median home value. This ratio suggests that rental income from Section 8 vouchers can provide a solid return relative to property values, making it a viable option for investors seeking steady cashflow.
Note that the data does not provide the median days on market (DOM) or the percentage of homes that have experienced price cuts, but these metrics would be useful for understanding the rent-versus-buy dynamics. The absence of such data implies that the market remains stable, without significant fluctuations in housing prices or sales times that might affect investment decisions.
The strongest angle for investors in this region is the potential for strong cashflow, given the substantial gap between the HUD FMR and the actual market rent. This scenario ensures that landlords and small-portfolio investors can rely on consistent, above-market rental income, even without focusing exclusively on premium units.
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.