Location: Hartford-West Hartford-East Hartford, CT | Metro: Hartford-West Hartford-East Hartford, CT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,190 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 06414 reveals some critical insights into the potential of Section 8 properties in this area. For the fiscal year 2024, the Fair Market Rent (FMR) for a two-bedroom apartment in this ZIP code is set at $1780 per month. This figure provides a baseline for understanding the rental income potential for properties participating in the Section 8 program.
However, without a specific market rent figure for comparison, we can only consider the FMR scenario. Assuming a median home value that is not available, let's use the FMR to derive a rough cap rate picture. The annualized FMR for a two-bedroom unit is $21,360 ($1780 x 12 months).
The implied gross yield for a Section 8 property in ZIP 06414 can be calculated by dividing the annualized FMR by the median home value. Since the median home value is not provided, we cannot calculate an exact gross yield. However, if we hypothetically assume a median home value, say $350,000, the gross yield would be approximately 6.1%. This is derived from the formula: Gross Yield = Annualized Rent / Property Value.
Given the 0.0% renter density in ZIP 06414, it is clear that the majority of residents do not rely on rental assistance programs such as Section 8. This low density suggests that finding qualified tenants might be challenging. Additionally, the Days on Market (DOM) being not available indicates a lack of recent sales data, which could affect the accuracy of the median home value estimate.
In conclusion, while the Section 8 program offers a guaranteed rental income of $1780 per month for a two-bedroom unit, the absence of market rent data makes it difficult to provide a comprehensive cap rate analysis. The implied gross yield of around 6.1% based on hypothetical values must be considered alongside the low tenant density and limited sales activity in ZIP 06414. Landlords and investors should carefully evaluate these factors before deciding to participate in the Section 8 program in this area.
Data Sources: FMR data from HUD (2027). 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.