Section 8 Fair Market Rent (FMR) for ZIP 06241 - 2027

Location: Northeastern Connecticut Planning Region, CT | Metro: Northeastern Connecticut Planning Region, CT

Investment Score for ZIP 06241

F
Monthly Rent (2BR)
$1,650
Median Price (2BR)
$319,453
1% Rule
0.52%
Annual Yield
6.2%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,150
1 Bedroom$1,330
2 Bedrooms$1,650
3 Bedrooms$2,110
4 Bedrooms$2,290
5 Bedrooms$2,656
6 Bedrooms$2,975
7 Bedrooms$3,213
8 Bedrooms$3,374

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,650 $319,453 0.52% F
3BR $2,110 $411,235 0.51% F
4BR $2,290 $440,500 0.52% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
6,585
Median Household Income
$88,389
Housing Units
2,899
Renter Percentage
21.6%
Occupancy Rate
94.5%
Renter Occupied
591

Killingly, CT, located in Windham County, is a ZIP code with a unique demographic profile. With a population of 6,585 residents, 21.6% of whom rent their homes, Killingly has a median household income of $88,389 and a median home value of $376,274. These figures indicate a relatively affluent community where homeownership is the norm.

The rental market in Killingly is particularly interesting when compared to the federal guidelines for housing assistance. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,690 per month, which represents the maximum amount that a landlord can receive through the Section 8 program. However, the actual market rent, according to Census ACS data, stands at $905 per month. This significant disparity between the FMR and the market rent means that landlords participating in the Section 8 program can potentially earn more than they would in the private market.

The economic dynamics of the rental market in Killingly suggest a stable environment. Despite the higher FMR compared to the market rent, the overall income levels and home values indicate a steady economic foundation. This stability is beneficial for both landlords and tenants, providing a predictable financial landscape that supports long-term investment and living arrangements.

To summarize, Killingly, CT, is characterized by a predominantly homeowner population with a modest rental sector. The voucher economics favor landlords, offering them an incentive to participate in the Section 8 program. The data signature points towards a stable ZIP code, suitable for those seeking reliable real estate investments.

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.