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 | $1,080 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $304,979 | 0.51% | F |
| 3BR | $1,980 | $383,980 | 0.52% | F |
| 4BR | $2,100 | $422,024 | 0.5% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 06235 (Chaplin, CT) for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1460 cover the debt service on a $355,579 property?
No. The FMR of $1460 does not sufficiently cover the debt service on a property valued at $355,579. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. At this price point, the rental income from Section 8 would likely fall short of covering these expenses.
2) Is the market rent of $1,408 above, at, or below the FMR?
Below. The market rent of $1,408 is slightly below the FMR of $1460, indicating that properties in this area are generally priced lower than what HUD considers fair market value for rental purposes. This could suggest a competitive market where landlords might struggle to charge the FMR.
3) Are 16.3% renters combined with an unspecified number of days as Days on Market (DOM) enough demand for Section 8?
It depends. With 16.3% of the population renting, there is some demand for rental properties. However, the lack of specific Days on Market (DOM) data makes it difficult to assess how quickly properties are rented out. If the DOM is low, it suggests strong demand and potentially shorter vacancy periods. Conversely, a high DOM indicates weaker demand and longer vacancies. Without precise DOM figures, you must rely on other local market indicators and your experience to make this judgment.
In conclusion, based on the provided data, the FMR does not adequately support the debt service for a $355,579 property in Chaplin, CT. Additionally, the market rent is slightly below the FMR, which could pose challenges in setting competitive rates. The rental demand, while present at 16.3%, requires further investigation into the DOM to fully evaluate its viability for Section 8 investments. If you decide to proceed, ensure thorough due diligence on local market conditions and the financials of the specific property.
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.