Section 8 Fair Market Rent (FMR) for ZIP 06520 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 06520 is located in New Haven, Connecticut, which is part of an urban environment characterized by diverse neighborhoods. While specific demographic details such as population size, percentage of renters, median income, and median home value are not available, the Fair Market Rent (FMR) data provides insights into the rental market dynamics.

In fiscal year 2024, the FMR for a two-bedroom apartment in ZIP 06520 is set at $1,620. This figure represents the 40th percentile rent level for the area, as determined by the Department of Housing and Urban Development (HUD).

Considering the hands-off approach preferred by some voucher operators, ZIP 06520 could be a suitable location. However, the practicality also depends on the local market rent. Landlords who wish to operate hands-on might find opportunities to add value through improvements or management practices, especially if the local market rents exceed the FMR.

To determine whether ZIP 06520 fits a hands-off or hands-on investment strategy, it's crucial to compare the FMR with the actual market rents. Given the FMR data, if market rents are significantly higher, a hands-on approach could yield better returns. Conversely, if market rents align closely with the FMR, a hands-off strategy may suffice.

Note that the FMRs include all utilities, providing a comprehensive benchmark for rental prices. For instance, the average FMR for a two-bedroom unit in 06520 for FY 2024 is $1,620, which covers both the rent and utilities.

Data Sources: FMR data from HUD (2027).

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.