Location: Hartford-West Hartford-East Hartford, CT | Metro: Hartford-West Hartford-East Hartford, 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 | $1,520 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,610 | $515,346 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 06409 provides valuable insights into potential investment returns. Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $1430 per month for fiscal year 2024, the annualized income would be $17,160. When compared to the median home value of $484,953, this implies a gross yield of approximately 3.54%. On the other hand, using the Census ACS reported market rent of $1,444 per month, the annualized income rises to $17,328, resulting in a slightly higher gross yield of 3.57%.
To determine which scenario is more realistic, consider the local rental market dynamics. ZIP 06409 has a renter density of 22.7%, indicating a moderate demand for rental properties. However, the absence of data regarding the days on market (DOM) suggests that there might be limited turnover in the rental market, which could affect the speed at which properties can be leased out under a Section 8 program.
The gross yields calculated above are modest and reflect the conservative nature of Section 8 investments. While the difference between the FMR-based yield and the market rent-based yield is minimal, the latter is generally more reflective of what landlords might actually receive. The market rent figure is based on recent data and thus likely captures current market conditions better than the FMR, which is often adjusted annually and may lag behind actual rental rates.
In conclusion, for ZIP 06409, the gross yields of 3.54% and 3.57% indicate a low-risk, stable income stream typical of Section 8 properties. Given the moderate renter density and the lack of specific DOM data, it's reasonable to lean towards the market rent-based yield of 3.57% as a more accurate reflection of potential earnings. This yield, while not exceptionally high, offers a predictable cash flow and is suitable for investors seeking steady returns rather than rapid capital appreciation.
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.