Location: Northeastern Connecticut Planning Region, 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 | $1,350 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,900 | $367,679 | 0.52% | F |
| 3BR | $2,410 | $472,551 | 0.51% | F |
| 4BR | $2,920 | $578,103 | 0.51% | F |
| 5BR | $3,387 | $637,801 | 0.53% | F |
U.S. Census Bureau data (2024)
ZIP 06359, located in North Stonington, CT, within the Northeastern Connecticut Planning Region and part of the larger CT metro area, presents a unique opportunity for landlords and small-portfolio investors looking to strategically allocate their real estate assets. This ZIP code can be best described as an appreciation play within a Section 8 portfolio strategy.
The Fair Market Rent (FMR) for ZIP 06359 in fiscal year 2024 is set at $1,340, which is slightly higher than the current market rent of $1,298. This spread indicates that properties within this ZIP code are currently undervalued relative to the government's assessment of fair rental values. The median home value in ZIP 06359 is $450,905, suggesting a robust local economy and stable property values.
While there is no specific data on price-cut shares or days on market (DOM), the trend towards appreciation can be inferred from the fact that the FMR exceeds the market rent. This implies that over time, rents in the area could rise to meet or exceed the FMR, leading to potential increases in rental income. Additionally, the lack of significant price cuts and quick sales suggest a strong demand for housing, further supporting the case for appreciation.
The renter share in ZIP 06359 stands at 7.1%, indicating a primarily owner-occupied market. However, the median income of $123,938 provides a solid financial foundation for both tenants and landlords, reducing the risk of default and ensuring a steady cash flow. Despite being a smaller percentage of renters, those who do participate in the Section 8 program can benefit from the higher FMR, potentially leading to better payment reliability and lower vacancy rates.
In conclusion, ZIP 06359 is best suited as an appreciation play in a Section 8 portfolio strategy. The slight premium of FMR over market rent and the high median income contribute to a favorable environment for long-term investment growth and stability.
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.