Location: Northeastern Connecticut Planning Region, 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 | $1,440 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $244,092 | 0.85% | C |
| 3BR | $2,570 | $317,390 | 0.81% | C |
U.S. Census Bureau data (2024)
A skeptical investor looking into the Windham, CT area (ZIP 06256) might raise several valid concerns regarding the feasibility of investing in Section 8 properties. Here's a detailed analysis addressing those concerns:
Objection 1: Will Fair Market Rent ($1840) cover the mortgage on a $303,884 home?
The Fair Market Rent (FMR) for a two-bedroom apartment in Windham, CT, for fiscal year 2024 is set at $1840. This figure represents the maximum amount that a landlord can charge for a unit under the Section 8 program. To determine if this FMR will sufficiently cover the mortgage on a median-priced home of $303,884, we must consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage with an interest rate of 4%, the monthly mortgage payment on a $303,884 home would be approximately $1470. The FMR of $1840 is therefore sufficient to cover the mortgage, leaving a surplus of around $370 per month.
Objection 2: Is there enough renter demand at 12.1%?
The rental vacancy rate in Windham, CT, stands at 12.1%. This percentage indicates the proportion of available rental units relative to the total number of units in the area. A higher vacancy rate could suggest lower demand for rentals, which might worry potential investors. However, a 12.1% vacancy rate is relatively moderate and does not necessarily imply a lack of demand. It's important to note that this rate includes all types of rentals, not just those participating in the Section 8 program. The demand for subsidized housing through Section 8 tends to be steady, even when general rental markets fluctuate.
Objection 3: Will vouchers keep pace with market rents?
The data provided does not include specific information on how Section 8 voucher amounts compare to the market rents in Windham, CT. This lack of detail makes it difficult to definitively state whether vouchers will cover the actual market rents. However, it's worth noting that the FMR is periodically adjusted based on local market conditions. While this does not guarantee that vouchers will always match market rents, it does ensure some level of alignment. Landlords should monitor local housing authority announcements and adjustments to FMR to stay informed about any changes.
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.