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 | $178,040 | 1.06% | B |
| 2BR | $2,260 | $329,521 | 0.69% | D |
| 3BR | $2,740 | $446,210 | 0.61% | D |
| 4BR | $3,240 | $477,519 | 0.68% | D |
| 5BR | $3,758 | $520,214 | 0.72% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 06605 in Bridgeport, CT, reveals two distinct scenarios based on the Fair Market Rent (FMR) and the Zillow Observed Rental Index (ZORI).
Using the annualized 2BR FMR of $1870 for fiscal year 2024, the potential rental income is $22,440 per year. Against the median home value of $372,531, this yields an implied gross rental yield of approximately 6%. The calculation is straightforward: divide the annual rental income by the property's value. This figure represents the return on investment if the property were rented at the FMR rate.
In contrast, the ZORI indicates a market rent of $2,136 per month, translating to an annual rental income of $25,632. When this amount is compared to the median home value, the implied gross rental yield increases to about 6.9%. Again, this is calculated by dividing the annual rental income by the median home value.
The higher gross rental yield associated with the ZORI suggests that market rents offer a more favorable return on investment than those set by the FMR. However, the reality of the situation must be considered. With a renter density of 67.9%, there is a significant demand for rental properties in the area. Yet, the N/A-day DOM (days on market) makes it difficult to assess how quickly properties can be leased, which impacts the feasibility of achieving market rents consistently.
Given these factors, the FMR scenario provides a more conservative and reliable projection for Section 8 properties. Landlords should anticipate a gross rental yield closer to 6% when participating in the Section 8 program, due to the guaranteed nature of the rent payments and the lower risk of vacancy. While the market rent scenario offers a higher yield, the uncertainty around lease durations and tenant turnover makes the FMR-based yield a safer bet for long-term investment planning.
To summarize, the gross rental yield for a Section 8 property in ZIP 06605 would likely be around 6%, while market rents suggest a yield of nearly 7%. Investors should weigh the benefits of higher returns against the stability and predictability offered by the FMR rates, especially considering the local rental market dynamics.
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.