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 | $1,430 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,700 |
| 5 Bedrooms | $3,132 |
| 6 Bedrooms | $3,508 |
| 7 Bedrooms | $3,789 |
| 8 Bedrooms | $3,978 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,640 | $176,565 | 0.93% | C |
| 2BR | $2,050 | $262,139 | 0.78% | D |
| 3BR | $2,440 | $431,045 | 0.57% | F |
| 4BR | $2,700 | $588,229 | 0.46% | F |
| 5BR | $3,132 | $635,996 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 06416, which covers parts of Cromwell, Connecticut, presents an interesting scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $1790 for fiscal year 2024, is notably lower than the market rent, measured at $2,552 using Zillow's ZORI index. This creates a gap of $762, or approximately 29.7%, between what the government will pay for a voucher tenant and the open-market rental rate.
In this context, where only 17.6% of residents are renters, landlords might find it challenging to attract non-voucher tenants willing to pay the higher market rates. The median home value in Cromwell is $369,684, indicating a preference for homeownership among the population. However, the median income of $110,596 suggests that many residents can afford to purchase homes, leaving fewer who might qualify for Section 8 vouchers.
The cost of housing voucher tenants below open-market rates is a critical consideration. At $1790, landlords receive less than the market rent of $2,552, which means they must either accept a lower rental income or seek additional sources of revenue. Given the relatively high median income, landlords could potentially target the remaining 82.4% of homeowners who might be interested in renting out their properties or investing in rental units at market rates.
For landlords and small-portfolio investors, the decision to participate in the Section 8 program should be based on a careful assessment of the local rental market dynamics. While the gap between FMR and market rent represents a potential yield challenge, it also provides an opportunity to serve a segment of the community that might otherwise struggle to find affordable housing. Landlords must weigh the benefits of guaranteed rental income against the costs of maintaining properties to meet federal standards and dealing with the administrative requirements of the program.
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.