Location: Waterbury-Shelton, CT | Metro: Waterbury-Shelton, 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 | $1,670 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,330 |
| 3 Bedrooms | $2,920 |
| 4 Bedrooms | $3,470 |
| 5 Bedrooms | $4,025 |
| 6 Bedrooms | $4,508 |
| 7 Bedrooms | $4,869 |
| 8 Bedrooms | $5,112 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,330 | $356,553 | 0.65% | D |
| 3BR | $2,920 | $434,067 | 0.67% | D |
| 4BR | $3,470 | $571,249 | 0.61% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP 06403, Beacon Falls, CT, presents a nuanced scenario for landlords and small-portfolio investors. The median home value stands at $414,126, which suggests that the area maintains a stable housing market, albeit without any indication of recent listing reductions or median days on market (DOM) trends.
The absence of percentage reductions in listings and the lack of specific DOM data imply that the market is neither overheated nor in a downturn. This stability is critical for investors looking to maintain consistent cash flows and avoid sudden market shifts that could impact their rental properties or potential for resale.
On the rental side, the Fair Market Rent (FMR) for ZIP 06403 is set at $1,930 for fiscal year 2024, compared to the current market rate of $1,921 according to the Census ACS. This slight increase signals a modest growth in the rental market, aligning with the broader economic recovery and potential inflationary pressures.
For long-term investors, the setup implies a conservative appreciation thesis. Given the median home value and the slight upward trend in rental rates, it's reasonable to expect gradual price increases over the next 12-24 months, driven by steady demand and limited supply dynamics typical of suburban markets. However, the absence of significant DOM or listing reduction data points to a balanced market, suggesting that rapid appreciation is unlikely.
The current equilibrium between home values and rental rates provides a solid foundation for landlords and small-portfolio investors. They can leverage this balance to ensure competitive rents and potentially capitalize on long-term appreciation, though they should prepare for moderate rather than explosive growth. This environment supports a strategy focused on maintaining occupancy rates and gradually adjusting rents to keep pace with the FMR.
Investors should also be aware of the broader economic context and how it might influence local markets. While the data does not suggest a speculative boom, the combination of stable home values and slightly increasing rental rates indicates a sustainable investment climate for those looking to hold properties over the medium to long term.
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.