Location: Norwich-New London-Willimantic, 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 | $1,340 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,930 | $344,462 | 0.56% | F |
| 3BR | $2,450 | $440,346 | 0.56% | F |
| 4BR | $3,040 | $550,912 | 0.55% | F |
| 5BR | $3,526 | $554,961 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 06415 in Colchester, Connecticut, reveals a favorable environment for investors seeking stable returns. The HUD Fair Market Rent (FMR) for ZIP 06415 is set at $1730 for fiscal year 2024, which is notably higher than the Census American Community Survey (ACS) reported market rent of $1474. This indicates that voucher tenants can easily cashflow at the FMR rate without relying on premium units.
To further understand the investment potential, consider the median home value in ZIP 06415, which stands at $429,274. This figure provides a basis for calculating the rent-to-price ratio, a critical metric for assessing whether it's more advantageous to rent or buy. Given the HUD FMR of $1730, the annual rent equivalent would be approximately $20,760, resulting in a rent-to-price ratio of about 4.8%. This ratio suggests that rental income is relatively low compared to property values, making buying potentially more attractive than renting for long-term investment purposes.
However, the dynamics between renting and buying do not significantly impact the decision for Section 8 investors. In ZIP 06415, the median days on market (DOM) is not applicable (N/A), indicating that properties are typically sold quickly without extended periods of being listed. Additionally, the share of homes requiring price cuts to sell is only 0.1%, suggesting a robust local real estate market with little pressure on sellers to reduce their asking prices.
The strongest angle for Section 8 investors in Colchester is cashflow. With voucher rates consistently above market rents, investors can secure positive cashflow positions without the need for premium unit investments. This scenario provides a solid foundation for generating reliable rental income from federally subsidized housing programs.
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.