Location: Norwich-New London-Willimantic, CT | Metro: Hartford-West Hartford-East Hartford, 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 | $1,900 |
| 1 Bedroom | $2,180 |
| 2 Bedrooms | $2,730 |
| 3 Bedrooms | $3,250 |
| 4 Bedrooms | $3,590 |
| 5 Bedrooms | $4,164 |
| 6 Bedrooms | $4,664 |
| 7 Bedrooms | $5,037 |
| 8 Bedrooms | $5,289 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,180 | $442,248 | 0.49% | F |
| 2BR | $2,730 | $544,903 | 0.5% | F |
| 3BR | $3,250 | $663,252 | 0.49% | F |
| 4BR | $3,590 | $849,671 | 0.42% | F |
| 5BR | $4,164 | $1,036,234 | 0.4% | F |
U.S. Census Bureau data (2024)
The market in ZIP 06371, Old Lyme, Connecticut, reveals a dynamic equilibrium between supply and demand, with subtle indications that demand might be slightly outpacing supply. The Fair Market Rent (FMR) for the area stands at $1890 for the fiscal year 2024, while the average market rent, according to the Census American Community Survey (ACS), is $2,172. This suggests that the rental market is robust, with rents exceeding the government's fair market assessment, indicative of strong tenant interest.
The median home value in Old Lyme is $672,319, reflecting a high-end residential market. A key metric is the 0.1% price-cut share, which implies that very few properties are being discounted, suggesting that homes are selling close to their asking prices. While the Days on Market (DOM) is listed as N/A, the low price-cut share suggests that homes are not lingering unsold, further supporting the idea that demand is steady.
The 10.9% renter share highlights another aspect of the market dynamics. In a community with such a high median home value, the relatively low percentage of renters could signal that long-term housing pressure is minimal. Homeowners likely represent the majority of residents, indicating a stable, owner-occupied environment. However, this also means that the rental market is niche, catering to those who prefer renting due to lifestyle choices or financial considerations, rather than necessity.
In summary, ZIP 06371 presents a market where demand appears to be maintaining or slightly surpassing supply, driven by a strong rental market and high property values. The low price-cut share and the nature of the rental market suggest a resilient local economy and a preference among residents for homeownership over renting. Landlords and small-portfolio investors should expect consistent performance but recognize the importance of targeting the specific needs of the limited rental market segment.
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.