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 | $1,170 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $319,456 | 0.53% | F |
| 3BR | $2,150 | $367,639 | 0.58% | F |
| 4BR | $2,280 | $394,047 | 0.58% | F |
| 5BR | $2,645 | $432,830 | 0.61% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP 06239 in Killingly, CT, are significant. Tenant turnover could be a challenge due to the difference between the market rent of $1,550 and the Fair Market Rent (FMR) set at $1,600 for FY 2024. This discrepancy can lead to difficulties in attracting tenants who qualify for the program, potentially resulting in higher vacancy rates. The vacancy exposure is particularly concerning as the Days on Market (DOM) data is not available, indicating that properties may remain unoccupied for extended periods. Additionally, the deferred maintenance exposure is notable given the typical home value of $348,864 and the median income of $74,267. Landlords might find themselves responsible for substantial repairs and upgrades without a corresponding increase in rental income.
Despite these risks, there are compelling reasons to consider Section 8 investments in this area. The renter share stands at 30.7%, which is a high percentage and suggests a robust demand for rental housing. High renter density often translates into a greater number of tenants seeking assistance through housing vouchers, thereby increasing the likelihood of finding qualified applicants. Furthermore, the presence of a large tenant pool can help mitigate some of the risks associated with vacancy and turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 06239 is moderate.
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.