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 | $1,160 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $355,278 | 0.47% | F |
| 3BR | $2,170 | $406,533 | 0.53% | F |
| 4BR | $2,690 | $490,349 | 0.55% | F |
U.S. Census Bureau data (2024)
16.5% of Waterford, CT residents are renters, indicating a modest demand for rental properties. The $390,153 median home value suggests that the area is relatively affluent, which can impact both rental and property values positively. However, the $1,047 market rent, according to the Census ACS, shows that the average rent is lower than the Fair Market Rent (FMR) of $1490 for zip code 06375 in fiscal year 2024. This discrepancy implies that landlords could potentially increase their rents to align with the FMR without losing tenants. The $111,833 median income indicates that residents have sufficient financial stability to afford higher rents, further supporting the potential for rent increases. Given the lack of data on days on market (DOM) and the percentage of price-cut shares, it's unclear how quickly properties sell or if there is significant competition among sellers. Despite this, the strong median income and the gap between market rent and FMR provide a solid foundation for investment. For landlords and small-portfolio investors, the opportunity to adjust rents closer to the FMR while maintaining tenant stability is compelling. The Section 8 Fair Market Rent of $1490 offers a benchmark for setting competitive rental prices, ensuring that properties remain attractive to both private and government-assisted tenants. In conclusion, Waterford, CT presents a balanced investment opportunity where the potential for higher rents coexists with a stable economic base.
Verdict: Acceptable for Section 8 investments given the alignment with FMR and stable median income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.