Section 8 Fair Market Rent (FMR) for ZIP 06389 - 2027

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

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,320
1 Bedroom	$1,510
2 Bedrooms	$1,890
3 Bedrooms	$2,400
4 Bedrooms	$2,980
5 Bedrooms	$3,457
6 Bedrooms	$3,872
7 Bedrooms	$4,182
8 Bedrooms	$4,391

To classify ZIP code 06389, we need to focus on the available data points: the Fair Market Rent (FMR) set at $1360 for fiscal year 2024. This figure is critical for understanding the rental yield potential in this area, especially for landlords and small-portfolio investors interested in Section 8 properties.

The FMR of $1360 indicates that properties in ZIP 06389 can generate a consistent rental income stream when leased through the Section 8 program. However, without comparative market rent and home value data, it's challenging to fully assess the yield potential relative to other investment strategies such as market-rate rentals or property flipping. The lack of these figures means we cannot determine if this is a high-yield market compared to non-assisted housing options.

Regarding stability, the absence of percentage of renters, days on market (DOM), and median income data complicates a thorough analysis. Stability in a rental market is typically gauged by the consistency of tenants, how quickly vacancies are filled, and the financial health of the local population. With the current data, we cannot make a definitive statement about the stability of ZIP 06389.

Based on the provided data:

The ZIP code offers a known rental income through the Section 8 program, which can be a predictable source of cash flow.
Without additional market data, the classification leans towards a steady-cashflow zone, suitable for those who prioritize consistent returns over potentially higher yields from market-rate rentals or flipping.
The investment strategy should focus on the reliability of the Section 8 program in generating stable income rather than speculative gains.

To make a more informed decision, further investigation into market rents, home values, and demographic data would be necessary. These additional metrics will provide a clearer picture of whether ZIP 06389 presents a high-yield opportunity or remains a low-risk, steady-income investment area.

Data Sources: FMR data from HUD (2027).

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.