Location: Bridgeport-Stamford-Danbury, CT | Metro: Bridgeport-Stamford-Danbury, 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,890 | $163,084 | 1.16% | B |
| 2BR | $2,260 | $270,876 | 0.83% | C |
| 3BR | $2,740 | $438,921 | 0.62% | D |
| 4BR | $3,240 | $493,760 | 0.66% | D |
| 5BR | $3,758 | $541,202 | 0.69% | D |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 06604 (Bridgeport, CT) for Section 8, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1810 cover the debt service on a $331,293 property?
No. The FMR of $1810 would not be sufficient to cover the debt service on a property valued at $331,293. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs, which would exceed the FMR amount.
2) Is the market rent ($1,903 ZORI) above, at, or below the FMR?
The market rent is slightly above the FMR at $1,903 compared to the FMR of $1810. This indicates that non-Section 8 tenants might pay more than the FMR, potentially offering higher rental income.
3) Are 65.9% renters combined with an unknown number of days on the market (DOM) enough demand?
It depends. With 65.9% of the population being renters, there is significant demand for rental properties. However, the lack of data regarding the average DOM makes it difficult to assess how quickly properties are rented out. High DOM values could indicate a soft market where finding tenants is challenging.
If you decide to proceed despite the FMR not covering debt service, consider the following:
The market rent exceeding the FMR suggests potential for higher income from non-Section 8 tenants.
The high percentage of renters implies strong demand for housing, but you need to verify the DOM to ensure properties can be leased promptly.
Investigate the local Section 8 voucher program's efficiency and tenant turnover rates to better understand the investment risk.
In conclusion, while the demand for rentals appears robust, the financial viability of a Section 8 investment in ZIP 06604 hinges on the ability to manage costs effectively and the potential to attract non-Section 8 tenants willing to pay the market rate. Ensure you conduct thorough due diligence on local market conditions and tenant dynamics before making a purchase.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.