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 | $1,640 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,360 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $3,100 |
| 5 Bedrooms | $3,596 |
| 6 Bedrooms | $4,028 |
| 7 Bedrooms | $4,350 |
| 8 Bedrooms | $4,568 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,360 | $387,375 | 0.61% | D |
| 3BR | $2,810 | $476,430 | 0.59% | F |
| 4BR | $3,100 | $588,389 | 0.53% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 06438 (Haddam, CT) for Section 8 purposes, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1720 cover the debt service on a property valued at $458,296?
No: The FMR of $1720 does not sufficiently cover the debt service on a property priced at $458,296. This makes it unfeasible to rely solely on Section 8 tenants for rental income.
Yes/It Depends: This scenario would be highly unlikely given the provided FMR. For reference, the annual FMR for ZIP 06438 is $20,640 ($1720 x 12 months).
Step 2: Compare the Zillow Observed Rental Index (ZORI) of $2,100 to the FMR of $1720.
ZORI is above FMR: The market rent at $2,100 is higher than the FMR of $1720, indicating that landlords might struggle to find non-Section 8 tenants willing to pay the lower FMR rate. Landlords would need to consider the difference between market rates and FMR when deciding to participate in the Section 8 program.
ZORI is equal to or below FMR: This condition is not met based on the provided data. However, if ZORI were equal to or below FMR, it would suggest a more balanced market where landlords could potentially attract both types of tenants.
Step 3: Evaluate the rental demand with 18.9% of residents being renters and an unknown number of days on the market (DOM).
Rental demand is sufficient: If the 18.9% rental rate is considered high enough and the DOM is low, it suggests a steady demand for rental properties. This can support landlords' decisions to invest in Section 8 properties.
Rental demand is insufficient: With only 18.9% of residents renting and an unknown DOM, there may not be enough demand to sustain a Section 8 property. Landlords must weigh the risk of having vacancies against the benefits of participating in the program.
In conclusion, the decision to purchase a property in ZIP 06438 for Section 8 use hinges on the ability of the FMR to cover debt service, the disparity between market rents and FMR, and the overall rental demand. Given the data, landlords will likely find it challenging to justify a purchase based solely on Section 8 tenants due to the low FMR compared to the property value and higher market rents.
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.