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 | $1,530 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,760 | $272,506 | 0.65% | D |
| 2BR | $2,200 | $354,912 | 0.62% | D |
| 3BR | $2,620 | $497,150 | 0.53% | F |
| 4BR | $2,890 | $578,895 | 0.5% | F |
U.S. Census Bureau data (2024)
ZIP code 06423 encompasses a part of East Haddam, Connecticut, known for its affluent and predominantly homeowner-oriented community. With a total population of 5,182, only 4.1% of residents are renters, indicating a strong preference for homeownership. The median household income in this area is a robust $107,549, reflecting the economic prosperity of its inhabitants. Furthermore, the median home value stands at $453,193, suggesting that the housing stock is of high quality and valued.
The rental economics in ZIP 06423 are noteworthy. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,450, which is notably lower than the market rent of $1,663 reported by the Census Bureau's American Community Survey. This disparity highlights the potential challenges and opportunities for landlords operating in this zip code, particularly those involved with Section 8 housing.
Given these conditions, ZIP 06423 is better suited for a hands-on value-add buyer rather than a hands-off voucher operator. The relatively low percentage of renters and the significant gap between FMR and market rent indicate that landlords must actively manage their properties to attract tenants willing to participate in the Section 8 program. Additionally, the higher market rents suggest that there is room for improvement through property enhancements and strategic management practices. Landlords who are prepared to engage deeply with their investments can leverage the strong local economy and high property values to create successful rental portfolios in this area.
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.