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 | $2,170 |
| 1 Bedroom | $2,350 |
| 2 Bedrooms | $2,820 |
| 3 Bedrooms | $3,510 |
| 4 Bedrooms | $3,960 |
| 5 Bedrooms | $4,594 |
| 6 Bedrooms | $5,145 |
| 7 Bedrooms | $5,557 |
| 8 Bedrooms | $5,835 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,350 | $180,992 | 1.3% | A |
| 2BR | $2,820 | $309,338 | 0.91% | C |
| 3BR | $3,510 | $408,525 | 0.86% | C |
| 4BR | $3,960 | $502,203 | 0.79% | D |
| 5BR | $4,594 | $522,036 | 0.88% | C |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 06518, which includes Hamden, Connecticut, is set at $2,230 for fiscal year 2024. This figure represents the payment standard for Section 8 housing vouchers, meaning it's the maximum amount that the government will pay landlords for renting a unit to tenants participating in the program. It's important to note that this isn't the rent you'll charge your tenant; rather, it's the ceiling for the subsidy portion.
In comparison, the local market rent for a similar property is around $2,119, according to the Zillow Observed Rent Index (ZORI). This suggests that the Section 8 payment standard is slightly higher than the average market rent in Hamden, which can be beneficial for landlords looking to cover costs and maintain profitability.
The demand for rental properties in Hamden is strong, with 39.3% of residents being renters. This high percentage indicates a robust market for rental units, including those under the Section 8 program. However, the competition for tenants can also be fierce, so it's crucial to ensure your property meets all the necessary requirements to qualify for Section 8.
If you're considering purchasing a property to become a Section 8 landlord, the median home value in Hamden is approximately $393,395. This figure gives you an idea of the typical investment required to acquire a home in this area. Given the local market conditions and the Section 8 payment standard, this could be a sound financial decision if you're prepared to manage a rental property effectively.
Before making your final decision, verify that your property complies with the Housing Quality Standards (HQS). These standards ensure that the rental unit is safe, decent, and sanitary. Failure to meet these criteria can result in disqualification from the Section 8 program, so it's essential to confirm that your property meets all HQS requirements.
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.