Section 8 Fair Market Rent (FMR) for ZIP 06606 - 2027

Investment Score for ZIP 06606

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	$1,560
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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,890	$195,905	0.96%	C
2BR	$2,260	$297,321	0.76%	D
3BR	$2,740	$416,061	0.66%	D
4BR	$3,240	$453,693	0.71%	D
5BR	$3,758	$517,705	0.73%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 06606 (Bridgeport, CT) 1. **Section 8 Voucher Dynamics** The Fair Market Rent (FMR) for ZIP code 06606 in Bridgeport, CT, for 2026 is set at $2300 for a two-bedroom apartment. This amount represents 37.6% of the median household income of $73,372. However, the actual rent prices can be significantly higher, as evidenced by the Zillow median price for a two-bedroom home, which stands at $292,693. The price-to-FMR ratio is 10.6x, indicating that the actual rental prices are much higher than the FMR. For voucher holders, this means that they face significant constraints in finding affordable housing, as the FMR is often lower than what landlords charge in the private market. In practice, many landlords may not accept vouchers due to the perceived administrative burden or because the voucher amount is insufficient to cover their desired rent. 2. **Affordability & Renter Profile** ZIP code 06606 has a population of 49,308, with 42.9% of residents being renters. The occupancy rate is 94.3%, suggesting a relatively tight rental market where demand is high relative to supply. Given that the median household income is $73,372 and the FMR for a two-bedroom unit is $2300, which is only 37.6% of the median income, it appears that the area is moderately affordable for those earning close to the median income. However, the high price-to-FMR ratio indicates that the market is not particularly favorable for low-income renters who rely on Section 8 vouchers. These renters would likely struggle to find units that both meet their needs and fall within the voucher limits. 3. **Investor Angle** From an investor’s perspective, the ZIP code 06606 presents a mixed picture. While the occupancy rate is high at 94.3%, indicating strong demand, the price-to-FMR ratio of 10.6x suggests that actual rental prices are far above the FMR. This means that properties priced at FMR levels might not generate sufficient cash flow to cover expenses and provide a profit margin. Additionally, the high rent prices relative to income suggest that there could be challenges in attracting tenants who qualify for Section 8 vouchers. The investment grade for this ZIP code would be considered moderate, given the balance between high occupancy rates and the difficulty in pricing properties at FMR levels. 4. **Specific Actionable Insights** - **Focus on Lower-Rent Properties**: Investors should consider focusing on properties that can be rented out for less than the Zillow median but still within the FMR range. For example, a one-bedroom unit with an FMR of $1920 might be more attractive to voucher holders and could potentially generate better cash flow if priced slightly below market rates. - **Consider Renovation Projects**: There may be opportunities to purchase older, underpriced properties and renovate them to meet FMR standards. This could involve targeting homes that are currently renting for around $1590-$1920 and improving them to command higher rents while remaining within the FMR guidelines. - **Engage with Local Landlords**: Building relationships with local landlords who are willing to work with Section 8 vouchers can help ensure a steady stream of tenants. It may also be beneficial to understand the specific reasons why some landlords are hesitant to accept vouchers and address these concerns through property management strategies. 5. **Bottom Line Recommendation** Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 06606 is to **Hold**. While there are potential opportunities to acquire and manage properties that cater to low-income renters, the overall market conditions make it challenging to achieve positive cash flow at FMR levels. Investors should carefully evaluate individual properties and consider the broader economic context before making any purchases. In summary, ZIP code 06606 in Bridgeport, CT, offers a high-demand rental market but poses significant challenges for those relying on Section 8 vouchers. The high price-to-FMR ratio and limited availability of affordable units mean that investors must be strategic in their approach to ensure profitability and tenant satisfaction.

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.