Section 8 Fair Market Rent (FMR) for ZIP 06484 - 2027

Investment Score for ZIP 06484

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	$1,560
1 Bedroom	$1,890
2 Bedrooms	$2,260
3 Bedrooms	$2,740
4 Bedrooms	$3,240
5 Bedrooms	$3,758
6 Bedrooms	$4,209
7 Bedrooms	$4,546
8 Bedrooms	$4,773

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	$1,890	$242,474	0.78%	D
2BR	$2,260	$432,875	0.52%	F
3BR	$2,740	$554,364	0.49%	F
4BR	$3,240	$721,442	0.45%	F
5BR	$3,758	$774,666	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 06484 (Shelton, CT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 06484, as per the 2026 data, is set at $2010 for a two-bedroom unit. This represents 22.3% of the median household income of $108,185 in the area. However, the actual median rent for a two-bedroom unit on Zillow is $422,013, which translates to a price-to-FMR ratio of 17.5 times. This indicates that the actual rental prices are significantly higher than the FMR, creating a substantial gap between what voucher holders can afford and the market rates. For instance, a voucher holder would only be able to cover $2010 of the monthly rent, leaving them to find properties that are willing to accept this amount, which is unlikely given the high market rates. #### Affordability & Renter Profile In Shelton, CT, 23.5% of the population are renters, indicating a moderate demand for rental housing. The occupancy rate of 95.1% suggests that the rental market is relatively tight, with few vacant units available. Given the high median household income of $108,185, it is likely that many residents can afford market-rate rentals. However, the 23.5% of renters who rely on Section 8 vouchers face significant challenges due to the high price-to-FMR ratio. The average renter in this ZIP code would need to spend a considerable portion of their income on housing if they were not subsidized, making it a challenging environment for low-income families. #### Investor Angle From an investor perspective, the ZIP code 06484 presents a mixed picture. While the high median household income and occupancy rate suggest a robust demand for rental properties, the price-to-FMR ratio of 17.5x implies that properties rented at FMR levels will struggle to compete with market-rate rentals. To determine whether this ZIP code is cash-flow positive at FMR, we must consider the typical costs associated with property management and maintenance. Assuming a conservative estimate of 30% of the FMR for these expenses, the net rental income for a two-bedroom unit would be approximately $1407 ($2010 - 30% of $2010). This amount is still far below the market rate, suggesting that properties rented at FMR levels would likely underperform financially compared to market-rate rentals. Given the high price-to-FMR ratio, the investment grade for properties in this ZIP code that are solely dependent on Section 8 vouchers would be considered low. Investors should carefully evaluate the potential for long-term profitability and consider diversifying their portfolio to include a mix of market-rate and subsidized rentals. #### Specific Actionable Insights 1. **Target Market-Rate Rentals**: Given the high price-to-FMR ratio, investors should focus on acquiring properties that can command market-rate rents. This strategy would maximize cash flow and potentially yield higher returns. For example, a two-bedroom unit renting at the Zillow median of $422,013 would provide a much better financial outcome than one renting at the FMR of $2010. 2. **Consider Mixed-Income Developments**: Developing or acquiring properties that cater to both market-rate and Section 8 voucher holders could help balance the financial risks. By having a mix of tenants, investors can ensure steady cash flow while also contributing to affordable housing initiatives. For instance, a development with 70% market-rate units and 30% Section 8 units could provide a more stable revenue stream. 3. **Evaluate Property Management Costs**: Before investing in Section 8-focused properties, investors should thoroughly assess the property management and maintenance costs. These costs can quickly erode any profit margins, especially when rents are capped at FMR levels. A detailed cost analysis is essential to determine if the investment is viable. #### Bottom Line For investors focusing exclusively on Section 8 vouchers, the recommendation for ZIP code 06484 is to **skip** this market. The high price-to-FMR ratio and the limited number of properties that might accept FMR levels make it a challenging environment for such investments. Instead, investors should consider ZIP codes with lower price-to-FMR ratios or explore opportunities for mixed-income developments where a portion of the units can be rented at market rates. This approach would provide a more balanced and potentially profitable investment strategy.

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.