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 | $1,300 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,860 | $248,290 | 0.75% | D |
| 3BR | $2,360 | $399,359 | 0.59% | F |
| 4BR | $2,930 | $533,597 | 0.55% | F |
| 5BR | $3,399 | $587,829 | 0.58% | F |
U.S. Census Bureau data (2024)
ZIP code 06339, located in Ledyard, CT, falls within the Norwich-New London-Willimantic, CT MSA metro area. To understand its position relative to other ZIP codes in this metro, we must consider several key metrics: Fair Market Rent (FMR), market rent, home values, and the percentage of renters.
The FMR for ZIP 06339 is set at $1560 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for a rental property under the Section 8 program. The market rent for the same ZIP code is listed at $1,244. These numbers suggest that while there is some subsidy available for tenants, the actual rents charged are lower than the FMR, indicating a potentially favorable environment for landlords who can attract subsidized tenants without setting rents at the maximum allowable rate.
The median home value in ZIP 06339 is $400,419. This figure is indicative of the overall housing market in the area, reflecting both the cost of ownership and the potential resale value of homes. When compared to the broader Norwich-New London-Willimantic, CT MSA, this home value could be considered either mid-tier or slightly above average, depending on the distribution of home values across the metro. It suggests a balance between affordability and desirability for homeowners.
The renter share in ZIP 06339 stands at 16.2%. This percentage is relatively low compared to many urban areas where renter shares might be higher due to limited homeownership opportunities. However, it's worth noting that a higher renter share combined with below-average home values often signifies an area attractive to Section 8 participants. In this case, the renter share is not particularly high, but the market rent is notably lower than the FMR, which could still make it a desirable location for tenants seeking rental assistance.
Based on the provided data, ZIP 06339 appears to be a mid-tier neighborhood within the Norwich-New London-Willimantic, CT MSA. The home values suggest a moderate cost of living, while the disparity between FMR and market rent indicates a subsidy-friendly environment for landlords. Although the renter share is not exceptionally high, the combination of lower-than-FMR market rents and reasonable home values makes it a viable option for investors looking to cater to both subsidized and non-subsidized tenants.
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.