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 | $1,440 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,630 |
| 4 Bedrooms | $3,260 |
| 5 Bedrooms | $3,782 |
| 6 Bedrooms | $4,236 |
| 7 Bedrooms | $4,575 |
| 8 Bedrooms | $4,804 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,650 | $330,518 | 0.5% | F |
| 2BR | $2,070 | $430,258 | 0.48% | F |
| 3BR | $2,630 | $532,103 | 0.49% | F |
| 4BR | $3,260 | $639,645 | 0.51% | F |
| 5BR | $3,782 | $977,946 | 0.39% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 06357, located in Niantic, Connecticut, within New London County, can be explained through a detailed breakdown of the financials involved. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1720. This figure represents the maximum amount that the housing authority will pay toward the rent on behalf of the tenant.
In contrast, the local market rent for a similar two-bedroom property is significantly higher at $2,695, as indicated by the ZORI (Zillow Observed Rent Index). This difference highlights the disparity between the government-set rates and the actual market conditions.
To understand what a voucher actually pays once the tenant's portion and utility allowances are factored in, let’s break it down further. Under the Section 8 program, tenants are generally required to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area, they might pay around $516 per month (30% of $1720).
Utility allowances are additional payments made by the housing authority to cover utilities. These allowances vary but are typically around $200-$300 per month. Therefore, the total reimbursement a landlord can expect from the housing authority would be the sum of the tenant's contribution and the utility allowance. For simplicity, if we use a utility allowance of $250, the total reimbursement would be approximately $766 ($516 tenant contribution + $250 utility allowance).
This means that out of the $1720 SAFMR, the landlord receives $766 directly from the tenant and the housing authority, leaving them responsible for the remaining portion of the rent. In this case, the landlord would need to accept a reimbursement gap of $965 per month ($2695 - $1720), which is the difference between the local market rent and the SAFMR.
Landlords must consider this gap when deciding whether to participate in the Section 8 program for properties in ZIP 06357. While the program ensures a steady stream of rent payments, it does not cover the full market value of the property, leading to a significant surplus in favor of the market rent over the SAFMR reimbursement.
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.