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 | $1,240 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,420 | $188,712 | 0.75% | D |
| 2BR | $1,780 | $267,206 | 0.67% | D |
| 3BR | $2,260 | $325,033 | 0.7% | D |
| 4BR | $2,800 | $362,168 | 0.77% | D |
| 5BR | $3,248 | $365,672 | 0.89% | C |
U.S. Census Bureau data (2024)
The classification of ZIP code 06360 in Norwich, Connecticut, hinges on an analysis of its yield and stability metrics. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,430, which is notably lower than the market rent of $1,759. This suggests a potential for higher rental yields when compared to the median home value of $293,393. To illustrate, if we consider a property valued at $293,393 and assume it is rented out at the FMR rate, the annual rental income would be approximately $17,160 ($1,430 x 12 months), leading to a yield of about 5.85%. However, renting at the market rate would push the annual rental income up to $21,108 ($1,759 x 12 months), increasing the yield to roughly 7.20%.
Stability in the market can be gauged by several factors, including the percentage of renters, the days on market (DOM) for properties, and average household income. In ZIP 06360, 44.8% of residents are renters, indicating a moderate demand for rental housing. The DOM figure stands at 13 days, which is relatively low and suggests that properties are being rented quickly, a positive sign for cash flow stability. Additionally, the average household income is $65,539, providing some assurance that tenants can afford rent payments, though this figure is not exceptionally high.
Based on these figures, ZIP 06360 leans towards a steady-cashflow zone rather than a high-yield/low-stability market. The moderate rental demand and quick turnover rates contribute to a stable environment for landlords and small-portfolio investors. While the potential for higher yields exists, especially when renting at market rates, the overall market conditions suggest that this area is well-suited for those seeking consistent returns rather than speculative high-yield 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.