Section 8 Fair Market Rent (FMR) for ZIP 06405 - 2027

Location: New Haven, CT | Metro: New Haven, CT MSA

Investment Score for ZIP 06405

D
Monthly Rent (2BR)
$2,080
Median Price (2BR)
$337,461
1% Rule
0.62%
Annual Yield
7.4%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,600
1 Bedroom$1,730
2 Bedrooms$2,080
3 Bedrooms$2,590
4 Bedrooms$2,920
5 Bedrooms$3,387
6 Bedrooms$3,793
7 Bedrooms$4,096
8 Bedrooms$4,301

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,730 $244,892 0.71% D
2BR $2,080 $337,461 0.62% D
3BR $2,590 $536,126 0.48% F
4BR $2,920 $745,192 0.39% F
5BR $3,387 $1,107,722 0.31% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
28,217
Median Household Income
$105,225
Housing Units
14,254
Renter Percentage
30.5%
Occupancy Rate
92.5%
Renter Occupied
4,020

The median income in ZIP 06405, Branford, CT, stands at $105,225. This figure is crucial when evaluating the local rental market, where the market rate for rent (ZORI) is $2,413. To determine if a household can afford this rate, we must consider the general rule of thumb that housing costs should not exceed 30% of one's income. At $2,413 per month, this would represent approximately 27.2% of the median income, making it a stretch but theoretically affordable for the average household.

In contrast, the Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1,810. This represents a significant difference from the market rate, highlighting an affordability gap for those relying on vouchers. The FMR is designed to ensure that low-income households do not pay more than 30% of their adjusted income for housing, which means the voucher system is geared towards supporting those who might struggle to meet the higher market rates.

With 30.5% of the 28,217 population being renters, there is a notable segment of the community that could be impacted by this affordability gap. For landlords, this means that while there is a pool of potential tenants, competition will be fierce between those willing to accept voucher payments and those seeking cash-paying tenants.

The takeaway for landlords is clear: accepting voucher payments can be a viable strategy to secure tenants, especially given the disparity between ZORI and FMR. However, it requires understanding the administrative processes involved with voucher programs. Landlords looking to attract cash-paying tenants should be prepared to offer competitive pricing or amenities that justify the higher cost compared to voucher rates. Ultimately, diversifying tenant acquisition strategies to include both voucher and cash-paying options can help landlords capitalize on the full spectrum of the rental market in Branford, CT.

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.