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 | $1,730 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,480 |
| 3 Bedrooms | $2,950 |
| 4 Bedrooms | $3,260 |
| 5 Bedrooms | $3,782 |
| 6 Bedrooms | $4,236 |
| 7 Bedrooms | $4,575 |
| 8 Bedrooms | $4,804 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,480 | $399,765 | 0.62% | D |
| 3BR | $2,950 | $515,977 | 0.57% | F |
| 4BR | $3,260 | $723,897 | 0.45% | F |
| 5BR | $3,782 | $1,054,832 | 0.36% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2,130 for ZIP 06117 (West Hartford, CT) can sufficiently cover the mortgage on a home valued at $556,844. To assess this, we need to consider the typical mortgage rates and terms. With an average 30-year fixed-rate mortgage around 5%, the monthly payment on a $556,844 home would be approximately $2,980. This means that the FMR of $2,130 falls short by about $850 per month. However, it's important to note that property values can fluctuate, and mortgage rates vary based on individual credit scores and down payments.
The percentage of renters in West Hartford stands at 20.7%, which could lead some investors to doubt the level of demand. While this figure is lower than many urban areas, it still represents a significant portion of the population. A 20.7% rental rate suggests that there are 1,400 households renting out of 6,760 total households. This indicates a substantial base of potential tenants. Moreover, the rental market in West Hartford is characterized by a mix of single-family homes and apartments, catering to diverse needs, which can help sustain demand.
Another concern might revolve around whether housing vouchers will keep up with market rents, which currently average around $3,200. The Housing Choice Voucher program aims to cover 30% of the household income towards rent, but the actual amount varies widely depending on local policies and funding. In West Hartford, the voucher amounts have historically lagged behind market rents, and there is no guarantee they will adjust to match the $3,200 average. This could pose challenges for landlords relying on voucher recipients, especially if the gap between voucher coverage and market rents widens.
In summary, while the FMR of $2,130 does not fully cover the mortgage on a $556,844 home, the rental market in West Hartford shows a steady demand with over 1,400 households seeking rental properties. The challenge lies in the discrepancy between housing vouchers and market rents, which may not align well, potentially affecting the profitability of properties rented through voucher programs.
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.