Location: Northeastern Connecticut Planning Region, CT | Metro: Northeastern Connecticut 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 | $1,110 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $342,279 | 0.46% | F |
| 3BR | $2,030 | $423,130 | 0.48% | F |
| 4BR | $2,170 | $488,341 | 0.44% | F |
| 5BR | $2,517 | $524,630 | 0.48% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 06234 (Brooklyn, CT) for Section 8 investment, follow this decision tree:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for ZIP 06234 in fiscal year 2024 is $1700. Calculate if this amount clears the debt service on a property priced at $409,535. If the DSCR is greater than 1, meaning the rental income exceeds the mortgage payments, then proceed to Step 2. Otherwise, the answer is No.
Step 2: Market Rent vs. FMR
The Census ACS reports the market rent in ZIP 06234 as $1,125. Compare this figure to the FMR of $1700. If market rent is below FMR, it suggests that Section 8 properties can be rented out at a premium, making the investment more attractive. In this case, the answer is Yes. If market rent equals or exceeds FMR, the investment becomes less compelling because there's no price advantage over regular market rates, leading to an answer of No.
Step 3: Demand Analysis
ZIP 06234 has 18.3% of its population as renters. Additionally, the days on market (DOM) data is not available, which makes it challenging to assess the speed at which rental properties are typically leased. However, given the percentage of renters, we can infer some level of demand.
In summary, for ZIP 06234, the viability of a Section 8 investment hinges on the debt service coverage ratio and the relationship between market rent and FMR. With limited data on DOM, demand analysis leans towards It Depends, necessitating further investigation into local market dynamics.
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.