Section 8 Fair Market Rent (FMR) for ZIP 06365 - 2027

Location: Norwich-New London-Willimantic, CT | Metro: Norwich-New London-Willimantic, CT MSA

Investment Score for ZIP 06365

Monthly Rent (2BR)

$2,100

Median Price (2BR)

$331,907

1% Rule

0.63%

Annual Yield

7.59%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,460
1 Bedroom	$1,680
2 Bedrooms	$2,100
3 Bedrooms	$2,670
4 Bedrooms	$3,310
5 Bedrooms	$3,840
6 Bedrooms	$4,301
7 Bedrooms	$4,645
8 Bedrooms	$4,877

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,100	$331,907	0.63%	D
3BR	$2,670	$424,870	0.63%	D
4BR	$3,310	$529,548	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,807

Median Household Income

$117,045

Housing Units

2,038

Renter Percentage

8.4%

Occupancy Rate

95.2%

Renter Occupied

162

Preston, Connecticut, represented by ZIP code 06365, is a small town located in Litchfield County. Known for its rural charm and proximity to larger cities, Preston offers a mix of residential and agricultural landscapes. This analysis will provide insights into the rental market dynamics of Preston, using key metrics to inform investment decisions.

The Fair Market Rent (FMR) for ZIP 06365 in fiscal year 2024 is set at $1870 per month for a two-bedroom apartment. This figure is established by the U.S. Department of Housing and Urban Development (HUD) and reflects the maximum amount that HUD will pay for rental housing in the area.
The average market rent for ZIP 06365, according to Census ACS data, stands at $1,433 per month. This indicates that the actual rents being charged are below the HUD's FMR, suggesting a potential opportunity for landlords to increase their rental rates without exceeding the affordability threshold.
The median home value in Preston is $411,738, which places it in a moderate range compared to other towns in Connecticut. This can be beneficial for investors looking to balance between property costs and potential returns.
Renters make up only 8.4% of the population in Preston, indicating a predominantly owner-occupied market. This low renter share might suggest that the rental market is less competitive, but also implies a smaller pool of potential tenants.
The Days on Market (DOM) for rentals is not available, which could indicate either a very quick rental turnover or a lack of recent data. However, given the low renter share, it is reasonable to assume that rental properties are not typically on the market for long once they are listed.
The median household income in Preston is $117,045, reflecting a relatively affluent community. This high income level supports the ability of residents to afford higher rents, especially when considering the lower-than-FMR market rent currently observed.

Investors should note the discrepancy between the market rent and the FMR, which presents an opportunity to adjust rental pricing upwards while still remaining within HUD guidelines. The affluent nature of the community, as indicated by the median income, further supports this strategy. Despite the small share of renters, the combination of moderate home values and high incomes suggests that Preston can offer a stable and potentially profitable rental market for those willing to invest. However, the scarcity of rental listings means that competition among tenants could be fierce, leading to quick property turnovers once they become available.

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.