Section 8 Fair Market Rent (FMR) for ZIP 06492 - 2027

Investment Score for ZIP 06492

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	$1,390
1 Bedroom	$1,510
2 Bedrooms	$1,810
3 Bedrooms	$2,250
4 Bedrooms	$2,590
5 Bedrooms	$3,004
6 Bedrooms	$3,364
7 Bedrooms	$3,633
8 Bedrooms	$3,815

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	$1,510	$161,862	0.93%	C
2BR	$1,810	$315,069	0.57%	F
3BR	$2,250	$441,012	0.51%	F
4BR	$2,590	$589,218	0.44%	F
5BR	$3,004	$648,500	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 06492 (Wallingford, CT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Wallingford, CT, as of 2026, is set at $1720 for a two-bedroom unit. This represents 19.6% of the median household income in the area, which is $105,061. However, the actual rental market in Wallingford is significantly higher. The Zillow median price for a two-bedroom rental property is $305,569, which translates to a monthly rent of approximately $2,546 when considering a typical mortgage payment based on a 30-year fixed-rate loan with a 4.5% interest rate. This means that the price-to-FMR ratio is about 1.48 times higher than the FMR, indicating a substantial gap between the FMR and the actual rental rates. For voucher holders, this creates significant constraints. They would need to find landlords willing to accept a rent of $1720, which is far below the market rate. Additionally, they might struggle to find units that meet the size requirements, as many landlords may prefer renting to tenants who can afford the higher market rates. #### Affordability & Renter Profile The renter population in Wallingford is 27.2% of the total population, which is 44,498 people. This translates to approximately 12,086 renters. Given the occupancy rate of 95.5%, it suggests that the rental market is relatively tight, with most available units being occupied. The median household income of $105,061 indicates that Wallingford is a middle to upper-middle-class community. However, the high price-to-FMR ratio of 14.8x implies that the rental market is quite expensive relative to the FMR. This makes it challenging for low-income households to find affordable housing. The FMR for a three-bedroom unit is $2130, which is still only 20.2% of the median income, suggesting that even larger units are not particularly affordable for those relying solely on Section 8 vouchers. Given these dynamics, the typical renter profile likely includes individuals or families with incomes above the median, who can afford the higher market rates. For those using Section 8 vouchers, finding suitable housing will be difficult due to the limited supply of units priced at or below the FMR. #### Investor Angle From an investor perspective, the ZIP code 06492 offers a mixed picture. While the rental market is strong and demand is high, the actual rents are significantly higher than the FMR. For instance, a two-bedroom unit priced at $2,546 per month would yield a much higher return compared to the FMR of $1720. To determine if this ZIP is cash-flow positive at FMR, we must consider the cost of acquisition and maintenance. If an investor purchases a two-bedroom unit for $305,569 and aims to rent it out at the FMR of $1720, the monthly mortgage payment would be around $1,500, assuming a 20% down payment and a 4.5% interest rate. After accounting for property taxes, insurance, and maintenance costs, the net cash flow could be negative or barely positive. Therefore, while the market is strong, the investment grade at FMR is relatively low. Investors would need to either rent at market rates or find ways to reduce their costs significantly to achieve positive cash flow. #### Specific Actionable Insights 1. **Target Larger Units**: Since the FMR for larger units (three-bedroom and four-bedroom) is closer to the median income percentage, targeting properties with three or more bedrooms may provide better opportunities for Section 8 voucher holders. A three-bedroom unit priced at $2130 is still only 20.2% of the median income, making it more accessible. 2. **Consider Rental Assistance Programs**: While the pure FMR approach may not be financially viable, combining Section 8 vouchers with other rental assistance programs could improve the financial outlook. For example, if an investor can secure additional subsidies or negotiate with local government agencies, they might be able to bridge the gap between FMR and market rates. 3. **Focus on Long-Term Appreciation**: Given the high price-to-FMR ratio, investors should focus on the long-term appreciation potential of properties in Wallingford. With a strong economy and a growing population, the value of real estate is likely to increase over time, providing a solid return on investment through capital gains rather than rental income alone. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow at FMR levels. Instead, investors should look for areas where the FMR is closer to the market rates or where there are additional rental assistance programs that can help bridge the gap. Wallingford's strong economy and high median income suggest that the market is geared towards higher-paying tenants, making it less suitable for those relying solely on Section 8 vouchers.

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.