Location: Norwich-New London-Willimantic, 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 | $1,590 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,590 |
| 5 Bedrooms | $4,164 |
| 6 Bedrooms | $4,664 |
| 7 Bedrooms | $5,037 |
| 8 Bedrooms | $5,289 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,280 | $353,793 | 0.64% | D |
| 3BR | $2,900 | $506,291 | 0.57% | F |
| 4BR | $3,590 | $705,722 | 0.51% | F |
| 5BR | $4,164 | $855,283 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 06333, located in East Lyme, Connecticut, reveals several key points for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by HUD for this area in fiscal year 2024 is $2030. This figure is significantly lower than the Zillow Observed Rental Index (ZORI), which stands at $2382. As such, landlords accepting Section 8 vouchers will experience marginal cash flow at the HUD FMR rate, meaning they can expect a slight shortfall when compared to the average market rent.
To further understand the investment landscape, consider the median home value in the area, which is $538,692. By comparing the median home value to the average market rent, we derive a rent-to-price ratio that indicates the relative affordability of renting versus buying. In this case, the ratio suggests that renting is more economical, making it an attractive option for potential tenants.
Note that the data does not provide specific information regarding the median days on market (DOM) or the percentage of homes that have experienced price cuts. However, these metrics would be relevant to assess the broader rent-versus-buy dynamics. If the DOM is high and the percentage of price cuts is significant, it could indicate a challenging market for home sales, potentially leading to increased demand for rentals.
The strongest investor angle in ZIP 06333 is likely stability. Given the consistent demand for rental properties due to the economic attractiveness of renting over buying, and the reliable nature of government-backed Section 8 vouchers, investors can expect steady and predictable cash flows without the need for constant tenant turnover. This stability makes the area particularly appealing for those seeking long-term, low-risk investments.
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.