Section 8 Fair Market Rent (FMR) for ZIP 06511 - 2027

Investment Score for ZIP 06511

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	$1,630
1 Bedroom	$1,770
2 Bedrooms	$2,120
3 Bedrooms	$2,640
4 Bedrooms	$2,980
5 Bedrooms	$3,457
6 Bedrooms	$3,872
7 Bedrooms	$4,182
8 Bedrooms	$4,391

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	$1,770	$272,074	0.65%	D
2BR	$2,120	$314,057	0.68%	D
3BR	$2,640	$368,365	0.72%	D
4BR	$2,980	$438,737	0.68%	D
5BR	$3,457	$806,728	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 06511 (New Haven, CT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 06511 in 2026 is set at $2,040 for a two-bedroom apartment. This figure represents 40.8% of the median household income in the area, which stands at $59,969. However, the actual median rent for a two-bedroom apartment on Zillow is $3,033.60, indicating that the price-to-FMR ratio is 12.4x. This means that actual rents are significantly higher than the FMR, creating a substantial constraint for Section 8 voucher holders. The voucher amount may not cover the full cost of renting a typical two-bedroom unit in the area, leading to difficulties in finding suitable housing. #### Affordability & Renter Profile ZIP code 06511 has a high renter population percentage of 80.3%, suggesting that it is primarily a rental market. With a median household income of $59,969, many residents may struggle to afford the high rents, especially those relying on Section 8 vouchers. The occupancy rate of 89.4% indicates that the market is relatively tight, with most units occupied. Given the high demand and limited supply, landlords have significant leverage to charge rents above the FMR, making it challenging for low-income renters to find affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 06511 presents a mixed scenario. While the FMR provides a guideline for what the government considers a fair rent, the actual market rents are much higher. For a two-bedroom unit, the FMR is $2,040, whereas the median rent is $3,033.60. This discrepancy suggests that properties rented at the FMR would likely be cash-flow negative, as they do not align with the prevailing market rates. However, the high renter population and occupancy rate indicate strong demand for rental properties. Investors who can secure tenants willing to pay the market rate might find the ZIP code attractive. Nevertheless, the investment grade for properties rented solely at the FMR would be low due to the financial gap between the FMR and market rents. #### Specific Actionable Insights 1. **Focus on Properties Below Market Rates:** Investors should consider acquiring properties that are currently rented below the market rate but still above the FMR. For example, a property rented at $2,500 could attract both market-rate tenants and those with Section 8 vouchers, providing a balanced approach to cash flow and occupancy. 2. **Utilize Rental Assistance Programs:** Engage with local rental assistance programs that can help bridge the gap between FMR and market rates. These programs can provide additional subsidies to make properties more affordable for voucher holders while maintaining profitability for investors. 3. **Target Smaller Units:** Given the high price-to-FMR ratio for larger units, investors might focus on one-bedroom or studio apartments where the FMR is closer to the market rate. A one-bedroom unit with an FMR of $1,650 might be more feasible for Section 8 voucher holders compared to a two-bedroom unit. #### Bottom Line For Section 8-focused investors, the ZIP code 06511 is not recommended for buying properties intended to be rented solely at the FMR. The high price-to-FMR ratio and tight market conditions suggest that such investments would likely be financially unviable. Instead, investors should hold existing properties that are already rented at market rates or seek opportunities outside this ZIP code where the FMR more closely aligns with actual 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.