Location: Waterbury-Shelton, 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 | $2,150 |
| 1 Bedroom | $2,330 |
| 2 Bedrooms | $2,800 |
| 3 Bedrooms | $3,480 |
| 4 Bedrooms | $3,930 |
| 5 Bedrooms | $4,559 |
| 6 Bedrooms | $5,106 |
| 7 Bedrooms | $5,514 |
| 8 Bedrooms | $5,790 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,800 | $493,798 | 0.57% | F |
| 3BR | $3,480 | $603,706 | 0.58% | F |
| 4BR | $3,930 | $735,724 | 0.53% | F |
| 5BR | $4,559 | $847,481 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 06477 in Orange, CT, presents an interesting mix of yield and stability factors that landlords and small-portfolio investors should consider.
On the yield axis, the Fair Market Rent (FMR) for ZIP 06477 stands at $2,290 for fiscal year 2024, which is notably higher than the market rent of $2,172. This suggests a potential for slightly above-average rental income compared to the local market. However, when juxtaposed against the median home value of $619,647, the yield is relatively modest. The FMR represents a significant portion of the home's value, indicating that while there is some upside in rental pricing, it is not exceptionally high relative to the cost of investment.
Moving to the stability axis, the ZIP code reveals a more conservative environment. With only 10.8% of residents being renters, the market is predominantly owner-occupied, which can translate into less demand for rental properties and potentially higher vacancy rates. The average household income in the area is $142,325, which is quite robust. High incomes generally correlate with lower default rates and greater financial stability among tenants. However, the lack of data on days on market (DOM) means we cannot assess how quickly properties might be rented out once they become available.
Based on these figures, ZIP 06477 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The slightly elevated FMR over market rent provides a solid, but not spectacular, yield opportunity. The strong household income supports tenant stability, though the low percentage of renters indicates a less dynamic rental market. For investors seeking consistent returns without the risk associated with high turnover or speculative investments, ZIP 06477 offers a balanced option.
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.