Location: Waterbury-Shelton, CT | Metro: New Haven, 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 | $1,300 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,700 |
| 5 Bedrooms | $3,132 |
| 6 Bedrooms | $3,508 |
| 7 Bedrooms | $3,789 |
| 8 Bedrooms | $3,978 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,810 | $313,974 | 0.58% | F |
| 3BR | $2,270 | $391,760 | 0.58% | F |
| 4BR | $2,700 | $427,551 | 0.63% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering Ansonia, CT (ZIP 06401) might have several valid concerns regarding the viability of participating in the Section 8 housing program. Let's address these concerns directly with the available data.
Will FMR $1560 (zip FY 2024) cover the mortgage on a $374,368 home?
The Fair Market Rent (FMR) for ZIP 06401 in fiscal year 2024 is set at $1560 per month. This figure represents the maximum amount that a landlord can charge for a Section 8 voucher. To determine if this FMR can cover the mortgage on a $374,368 home, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the principal and interest payment would be approximately $1815 per month. Therefore, the FMR of $1560 does not fully cover the mortgage payment. Landlords must consider additional sources of income or other cost-saving measures to ensure profitability.
Is there enough renter demand at 41.7%?
The rental vacancy rate for ZIP 06401 is 41.7%. This percentage indicates that nearly half of all rental units are vacant, suggesting a relatively high level of supply compared to demand. However, it's important to note that a high vacancy rate could also mean that the market is competitive, which might drive down rental prices and make it harder to attract tenants willing to pay the higher FMR. For landlords, this means they should be prepared to offer competitive pricing and amenities to attract tenants.
Will vouchers keep pace with $1,692 market rents?
The current market rent for ZIP 06401 is $1692 per month. The FMR for Section 8 vouchers is lower at $1560. This discrepancy means that landlords relying solely on Section 8 vouchers will receive less than the market rent. However, the FMR is adjusted annually based on changes in the local rental market, so it's possible that future adjustments could bring the FMR closer to the market rent. In the meantime, landlords may need to adjust their expectations or seek a mix of market-rate and voucher-assisted tenants to maintain financial stability.
The data provides a clear picture of the challenges and considerations involved in investing in Section 8 properties in Ansonia, CT. While the FMR does not fully cover mortgage payments and the rental vacancy rate suggests a competitive market, annual adjustments to the FMR offer some hope for better alignment with market rents in the future. Investors should carefully weigh these factors before making decisions.
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.