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 | $1,640 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,350 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,700 |
| 5 Bedrooms | $4,292 |
| 6 Bedrooms | $4,807 |
| 7 Bedrooms | $5,192 |
| 8 Bedrooms | $5,452 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,350 | $531,613 | 0.44% | F |
| 3BR | $2,990 | $567,988 | 0.53% | F |
| 4BR | $3,700 | $719,854 | 0.51% | F |
| 5BR | $4,292 | $1,070,882 | 0.4% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 06355, Groton, Connecticut, for fiscal year 2024 is set at $1800. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the actual rent you will receive; it's the ceiling for rent in subsidized housing.
In comparison, the local median rent for ZIP 06355, as indicated by the Zillow Observed Rental Index (ZORI), stands at $2,275. This suggests that non-subsidized rents are higher than the Section 8 payment standard, which could mean that landlords participating in the Section 8 program might see slightly lower returns than those who do not.
The demand for rental properties in Groton is significant, with 19.0% of the population being renters. This indicates a steady need for affordable housing options, which could be met through Section 8 rentals. However, the acquisition cost of a property in this area is notably high, with an average price tag of around $569,523.
To participate effectively in the Section 8 program, ensure your property meets all the required standards set by the Housing Choice Voucher Program. These standards include safety, health, and habitability criteria, which must be satisfied to receive approval and subsequent rental payments. Once your property is approved, you can expect regular rental payments directly from the government, ensuring financial stability for your investment.
If you're considering your first Section 8 rental in Groton, the key figure to verify is whether your property's value and condition justify the $1800 monthly ceiling for rent. This will help you determine if the investment aligns with your financial goals given the higher market rents and property values in the area.
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.