Location: New Haven, CT | Metro: New Haven, 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 | $1,900 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,470 |
| 3 Bedrooms | $3,070 |
| 4 Bedrooms | $3,470 |
| 5 Bedrooms | $4,025 |
| 6 Bedrooms | $4,508 |
| 7 Bedrooms | $4,869 |
| 8 Bedrooms | $5,112 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,470 | $313,135 | 0.79% | D |
| 3BR | $3,070 | $465,871 | 0.66% | D |
| 4BR | $3,470 | $584,068 | 0.59% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 06471, located in North Branford, Connecticut, reveals a unique blend of yield and stability that does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it presents an opportunity that lies somewhere in between these extremes.
On the yield axis, the Fair Market Rent (FMR) for ZIP 06471 in fiscal year 2024 is set at $1,870, which is slightly below the market rent of $1,980. This indicates a modest potential for rental income above the federally subsidized rate, but not at a level that would be considered exceptionally high. The median home value of $444,329 suggests a relatively stable property market, though this figure alone does not directly impact rental yields.
Moving to the stability axis, the data shows that only 12.6% of residents are renters, indicating a predominantly owner-occupied community. This low percentage of renters can be interpreted as a sign of limited demand for rental properties, potentially leading to higher vacancy rates and reduced cash flow consistency. However, the average income of $109,388 suggests that those who do rent are likely to have strong financial backing, reducing the risk of default and enhancing the overall stability of rental income.
The absence of data on days on market (DOM) complicates the assessment of stability further. Typically, a lower DOM would indicate a quicker turnover of rental units, which could be beneficial for landlords seeking to minimize downtime between tenants. Without this information, we cannot fully gauge the speed at which rental properties might be filled.
In summary, ZIP 06471 offers a moderate yield with a slight edge over the FMR, balanced against a backdrop of limited rental demand and high tenant income stability. Landlords and small-portfolio investors should approach this market with caution, considering the relatively low proportion of renters and the need for thorough vetting of potential tenants to ensure reliable cash flow.
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.