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 | $1,240 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $317,741 | 0.56% | F |
| 3BR | $2,120 | $421,513 | 0.5% | F |
| 4BR | $2,340 | $491,906 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 06232 in Andover, CT, reveals an interesting picture when comparing the annualized Fair Market Rent (FMR) and the market rent against the median home value.
Based on the data for fiscal year 2024, the annualized FMR for a two-bedroom property in ZIP 06232 is $1190 per month. This translates to an annual income of $14,280. Given the median home value of $402,282, the implied gross yield for a property receiving Section 8 payments would be approximately 3.55%. The calculation is straightforward: divide the annual rental income ($14,280) by the median home value ($402,282).
In contrast, the Census ACS data indicates a market rent of $1,166 per month for a similar two-bedroom property. This equates to an annual rental income of $14,004. Using the same median home value, the implied gross yield for a property rented at market rates is slightly lower at about 3.48%. Again, this figure is derived by dividing the annual rental income ($14,004) by the median home value ($402,282).
Considering the 6.9% renter density in Andover, it's important to note that the majority of homeowners in this area are likely owner-occupiers rather than landlords. However, for those who do invest in rental properties, the choice between Section 8 and market rents hinges on several factors, including the stability of income and the potential for higher yields.
While the gross yields for both scenarios are quite close, the Section 8 scenario offers a slightly higher yield. This could be attractive to some investors looking for stable, government-backed rental income. However, the lack of data on days on market (DOM) suggests that finding tenants might be challenging, especially considering the relatively low renter population. Market rents offer a competitive rate that might attract more tenants, but they also come with the risk of fluctuating rental incomes.
To conclude, the gross yield for a Section 8 property in ZIP 06232 is 3.55%, while for a market-rent property, it is 3.48%. Investors should weigh these figures against the broader context of tenant availability and the specific goals of their investment strategy.
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.