Section 8 Fair Market Rent (FMR) for ZIP 06254 - 2027

Location: Norwich-New London-Willimantic, CT | Metro: Norwich-New London-Willimantic, CT MSA

Investment Score for ZIP 06254

F
Monthly Rent (2BR)
$1,680
Median Price (2BR)
$347,696
1% Rule
0.48%
Annual Yield
5.8%

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$1,160
1 Bedroom$1,350
2 Bedrooms$1,680
3 Bedrooms$2,170
4 Bedrooms$2,690
5 Bedrooms$3,120
6 Bedrooms$3,494
7 Bedrooms$3,774
8 Bedrooms$3,963

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,680 $347,696 0.48% F
3BR $2,170 $413,496 0.52% F
4BR $2,690 $474,203 0.57% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
2,004
Median Household Income
$105,000
Housing Units
734
Renter Percentage
15.9%
Occupancy Rate
97.5%
Renter Occupied
114

The ZIP code 06254 in Franklin, Connecticut, stands out within New London County due to its unique demographic and economic characteristics. With a population of 2,004 residents, it has a relatively low rental rate at 15.9%, indicating that homeownership is prevalent. The median income of $105,000 suggests that the majority of residents have a comfortable financial standing, which is further evidenced by the high median home value of $402,829.

In terms of voucher economics, the Fair Market Rent (FMR) for ZIP 06254 is set at $1,400 for the fiscal year 2024, significantly higher than the average market rent of $767 as reported by the Census ACS. This disparity means that landlords who accept Section 8 vouchers can expect higher rents compared to the local market rate, potentially leading to better returns on investment. However, the high FMR also implies that the cost of living in the area is above the national average, which could influence the demand for subsidized housing.

The data signature for ZIP 06254 reads as stable, with strong indicators of economic health and a preference for homeownership among its residents. The significant gap between the FMR and the actual market rent suggests that there is ample opportunity for landlords to benefit from the Section 8 program without necessarily facing the challenges often associated with transitional markets.

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.