Location: Hartford-West Hartford-East Hartford, CT | Metro: Hartford-West Hartford-East Hartford, CT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,020 |
| 1 Bedroom | $2,310 |
| 2 Bedrooms | $2,900 |
| 3 Bedrooms | $3,460 |
| 4 Bedrooms | $3,810 |
| 5 Bedrooms | $4,420 |
| 6 Bedrooms | $4,950 |
| 7 Bedrooms | $5,346 |
| 8 Bedrooms | $5,613 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 06269 is centered around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as set by HUD for fiscal year 2024, stands at $1910. In contrast, the Census ACS data reveals that the market rent in this region is $2,638. This represents a gap of $728 per month, or approximately 38%, between what landlords can charge non-voucher tenants and the amount they would receive through Section 8 vouchers.
Given that the FMR is less than the market rent, landlords who participate in the Section 8 program will be renting their properties below the open-market rates. This scenario presents a trade-off: while landlords benefit from the stability and security of rental payments guaranteed by the government, they also face a reduction in potential income. The difference of $728 per unit per month could be substantial over time, especially considering the high percentage of renters in the area—100.0% of households are reported to be renters, indicating a strong demand for rental housing but also suggesting a competitive market.
The median home value and median income data are not available, which means we must rely on other indicators to assess the financial viability of participating in Section 8. Despite these missing figures, it's evident that the lower FMR compared to the market rent could affect the overall yield of an investment property. Landlords might need to consider the long-term benefits such as reduced vacancy rates and the predictability of income versus the short-term financial impact of receiving lower rents.
To summarize, the decision to accept Section 8 tenants in ZIP 06269 involves recognizing the $728 monthly shortfall relative to market rates. This discrepancy can influence the net operating income and the capitalization rate of the investment, potentially making it less attractive purely as a yield play. However, the high renter population suggests that there is a consistent demand for affordable housing, which can provide stability to landlords willing to participate in the program.
Data Sources: FMR data from HUD (2027). 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.