Section 8 Fair Market Rent (FMR) for ZIP 06320 - 2027

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

Investment Score for ZIP 06320

D
Monthly Rent (2BR)
$1,910
Median Price (2BR)
$285,191
1% Rule
0.67%
Annual Yield
8.04%

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$1,330
1 Bedroom$1,520
2 Bedrooms$1,910
3 Bedrooms$2,430
4 Bedrooms$3,010
5 Bedrooms$3,492
6 Bedrooms$3,911
7 Bedrooms$4,224
8 Bedrooms$4,435

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,520 $140,424 1.08% B
2BR $1,910 $285,191 0.67% D
3BR $2,430 $342,058 0.71% D
4BR $3,010 $409,436 0.74% D
5BR $3,492 $514,062 0.68% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
27,703
Median Household Income
$59,170
Housing Units
12,751
Renter Percentage
63.9%
Occupancy Rate
92.6%
Renter Occupied
7,548

1520 is the Fair Market Rent (FMR) for ZIP code 06320 in New London, CT, for fiscal year 2024. 1635 represents the actual market rent (ZORI), indicating a slight premium over the FMR. The median home value stands at 312559, which suggests a moderate housing market where properties are neither excessively expensive nor cheap. 63.9 percent of the population are renters, highlighting a strong demand for rental properties in the area. 59170 is the median income, a figure that supports the viability of tenants paying market rents. Price-cut share is 0.1%, showing that the market is relatively stable, with few landlords needing to reduce their asking prices. Day DOM is not available, but given the low price-cut share, it's likely that properties are moving quickly off the market. In summary, the combination of a moderate median home value, a high renter share, and a robust median income makes ZIP 06320 an attractive investment location for both landlords and small-portfolio investors. The slight difference between the FMR and ZORI suggests a competitive market, yet one where rental income can be slightly above the government-set standards. Given these factors, ZIP 06320 is suitable for Section 8 participation.

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.