Location: Norwich-New London-Willimantic, CT | Metro: Norwich-New London-Willimantic, 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 | $1,430 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,050 | $351,994 | 0.58% | F |
| 3BR | $2,610 | $428,819 | 0.61% | D |
| 4BR | $3,230 | $519,964 | 0.62% | D |
| 5BR | $3,747 | $552,632 | 0.68% | D |
U.S. Census Bureau data (2024)
ZIP 06249, located in Lebanon, CT, within the Norwich-New London-Willimantic, CT MSA metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Fair Market Rent (FMR) for a one-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1600, closely matching the market rate of $1630. This alignment ensures that landlords can reliably cover their operational costs without significant risk of under-renting.
The median home value in ZIP 06249 stands at $413,061. Given the stable rental market and the minor difference between the FMR and the actual market rates, properties in this area will consistently generate steady income, which is crucial for maintaining the financial health of a Section 8 portfolio. Landlords can expect a consistent stream of rental income that aligns well with their expenses, making it a dependable part of their investment strategy.
The 12.0% renter share indicates that while a significant portion of the population owns homes, there is still a notable segment of renters. This mix can be beneficial for diversifying a landlord's overall portfolio, but when considering the specific context of Section 8, the focus remains on the stability of cash flow rather than appreciation potential. With a median income of $109,135, tenants in this area are likely to have better financial stability, reducing the risk of default or late payments.
In conclusion, ZIP 06249 is best suited as a cash-flow anchor within a Section 8 portfolio. The nearly identical FMR and market rates ensure that rental income will effectively cover property costs, while the high median income provides additional security against tenant financial instability. This makes the ZIP code a reliable choice for generating predictable and stable returns, essential for any landlord or small-portfolio investor looking to manage their Section 8 investments successfully.
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.