Section 8 Fair Market Rent (FMR) for ZIP 06437 - 2027

Location: New Haven, CT | Metro: New Haven, CT MSA

Investment Score for ZIP 06437

Monthly Rent (2BR)

$2,340

Median Price (2BR)

$495,016

1% Rule

0.47%

Annual Yield

5.67%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,800
1 Bedroom	$1,950
2 Bedrooms	$2,340
3 Bedrooms	$2,910
4 Bedrooms	$3,280
5 Bedrooms	$3,805
6 Bedrooms	$4,262
7 Bedrooms	$4,603
8 Bedrooms	$4,833

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,950	$286,511	0.68%	D
2BR	$2,340	$495,016	0.47%	F
3BR	$2,910	$611,056	0.48%	F
4BR	$3,280	$787,608	0.42%	F
5BR	$3,805	$966,213	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

22,067

Median Household Income

$137,615

Housing Units

9,825

Renter Percentage

16.4%

Occupancy Rate

90.1%

Renter Occupied

1,450

To decide whether to invest in ZIP 06437 (Guilford, CT) for Section 8 properties, follow this decision tree:

1) Does FMR $1960 (zip FY 2024) clear debt service on a $614,845 property?

No: The Fair Market Rent (FMR) of $1960 does not cover the debt service on a property valued at $614,845. Debt service includes mortgage payments, property taxes, insurance, and maintenance costs. For a property of this value, these costs typically exceed the FMR amount, making it unprofitable without additional subsidies.

2) Is market rent $1,717 (Census ACS) above, at, or below FMR?

Below: The market rent of $1717 is below the FMR of $1960. This suggests that landlords could potentially charge the higher FMR rate for Section 8 tenants, which would be advantageous compared to the lower market rates.

3) Are 16.4% renters + N/A-day days on market (DOM) enough demand?

It depends: With 16.4% of residents being renters, there is a moderate level of rental demand in Guilford. However, the lack of data on the average days on market (DOM) makes it difficult to assess how quickly rental units are filling up. A low DOM indicates strong demand, while a high DOM suggests the opposite. Without this information, you must consider other factors such as the local job market, population growth, and the availability of Section 8 vouchers.

If the FMR does not cover debt service, the answer is clear: do not purchase a property in ZIP 06437 for Section 8 investment. Even if the market rent is below the FMR, the financial viability remains questionable without sufficient rental demand. In Guilford, where the rental percentage is moderate but DOM data is unavailable, you must conduct further research to determine if the demand is strong enough to support a Section 8 property. Consider speaking with local real estate agents or reviewing recent rental listings to gain a better understanding of the current market conditions.

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.