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 | $1,040 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $308,520 | 0.49% | F |
| 3BR | $1,920 | $369,059 | 0.52% | F |
| 4BR | $2,100 | $391,526 | 0.54% | F |
| 5BR | $2,436 | $425,350 | 0.57% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 06260, Putnam, CT, reveals a favorable cashflow opportunity due to the Federal Housing Administration's Fair Market Rent (FMR) set at $1560 for the fiscal year 2024. In comparison, the average market rent reported by the Census Bureau's American Community Survey (ACS) stands at $1,149. This indicates that voucher tenants can cashflow significantly at the HUD FMR rate, providing a substantial margin above the local market rent.
To further analyze the investment potential, consider the median home value in the area, which is $343,279. The rent-to-price ratio calculated from these figures suggests that rental income is relatively high compared to property values. This ratio can be an important indicator for investors looking to understand the relative affordability of renting versus buying in the region. A higher ratio implies that rental properties are more attractive in terms of cashflow when compared to purchasing homes.
While the data does not provide specific figures for days on market (DOM) and the percentage of price cuts, these metrics are generally indicative of the ease of selling homes in the area. Given the significant cashflow potential from the disparity between HUD FMR and market rent, the dynamics of rent vs. buy are particularly relevant. However, the lack of specific DOM and price cut percentages means that we cannot directly assess how quickly or at what discount homes are typically sold.
The strongest investor angle in this market is cashflow. The ability to secure rents at the HUD FMR while the local market rent is considerably lower provides a clear advantage for landlords and small-portfolio investors. This scenario allows for a robust cashflow position, making it easier to cover mortgage payments, maintenance costs, and other expenses associated with property ownership.
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.