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 | $1,570 |
| 1 Bedroom | $1,800 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $2,860 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,800 | $516,153 | 0.35% | F |
| 2BR | $2,250 | $639,152 | 0.35% | F |
| 3BR | $2,860 | $747,115 | 0.38% | F |
| 4BR | $3,540 | $1,025,094 | 0.35% | F |
| 5BR | $4,106 | $1,518,477 | 0.27% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 06378 in Stonington, Connecticut, comes with several notable risks that must be carefully considered. Firstly, tenant turnover is a significant concern due to the disparity between the market rent of $2,773 and the Fair Market Rent (FMR) of $1,770 for fiscal year 2024. This difference suggests that tenants might struggle to afford market rents, leading to higher turnover rates which can disrupt rental income stability.
Vacancy exposure is another critical issue. The days on market (DOM) data is currently unavailable, which makes it difficult to predict how long it might take to fill vacancies. A prolonged vacancy period can result in significant financial losses for the landlord, especially considering the typical home value in the area is $757,119. Landlords should be prepared for potential gaps in rental income.
Deferred maintenance is also a risk factor. With a median household income of $135,714, residents might have the financial capability to maintain their homes well. However, this does not guarantee that all tenants will keep the property in good condition, potentially leading to unforeseen repair costs. It's essential to budget for these expenses when evaluating the overall profitability of a Section 8 investment.
Despite these risks, the high renter share of 22.2% in Stonington indicates a robust demand for rental housing. This typically translates into a higher demand for Section 8 vouchers, making it easier to find qualified tenants who can consistently pay the rent. The combination of a strong rental market and the availability of vouchers can mitigate some of the financial risks associated with tenant turnover and vacancy exposure.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 06378 is moderate.
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.