Location: Northeastern Connecticut Planning Region, CT | Metro: Northeastern Connecticut Planning Region, CT
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,520 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
U.S. Census Bureau data (2024)
The ZIP code 06373, located in East Haddam, Connecticut, presents an interesting scenario for both renters and landlords. The median income figure is currently unavailable, which makes it challenging to assess the overall financial health of households in this area. However, the market rate for rental properties is also listed as N/A, indicating a lack of comprehensive data on typical rent prices.
Despite these gaps in data, we can still analyze the situation using the Fair Market Rent (FMR) figure provided by the Department of Housing and Urban Development (HUD). For fiscal year 2024, the HUD voucher payment standard for ZIP 06373 is set at $1690. This amount represents the maximum monthly rent that a household receiving a housing voucher can be expected to pay, assuming they contribute 30% of their adjusted income towards rent.
The affordability gap in this context refers to the difference between the actual market rent and what a household can reasonably afford. Given that only 9.1% of the 219 residents are renters, competition among landlords could be relatively low. This means that landlords might have fewer options when it comes to finding tenants willing to pay market rates, especially if those rates exceed the voucher payment standard.
Landlords considering whether to accept vouchers or focus on cash-paying tenants should take into account the limited number of renters and the potential for higher vacancy rates if rents are set above the voucher payment standard. Accepting vouchers could ensure a steady stream of tenants, albeit at a fixed rate. On the other hand, focusing on cash-paying tenants might yield higher rental incomes but could come with the risk of prolonged vacancies if the local economy does not support higher rent payments.
Takeaway: In ZIP 06373, where the voucher payment standard is $1690, landlords must weigh the benefits of guaranteed tenancy against the potential for higher rents from cash-paying tenants. Given the low percentage of renters and limited population, setting rents above the voucher standard could result in lower occupancy rates and reduced income stability.
Data Sources: FMR data from HUD (2027). 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.