Location: Waterbury-Shelton, 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 | $1,700 |
| 1 Bedroom | $2,100 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $2,970 |
| 4 Bedrooms | $3,620 |
| 5 Bedrooms | $4,199 |
| 6 Bedrooms | $4,703 |
| 7 Bedrooms | $5,079 |
| 8 Bedrooms | $5,333 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,100 | $326,281 | 0.64% | D |
| 2BR | $2,460 | $410,629 | 0.6% | F |
| 3BR | $2,970 | $493,103 | 0.6% | D |
| 4BR | $3,620 | $576,933 | 0.63% | D |
| 5BR | $4,199 | $652,356 | 0.64% | D |
U.S. Census Bureau data (2024)
ZIP 06614, located in Stratford, CT, within the Waterbury-Shelton, CT MSA metro area, serves best as an appreciation play in a Section 8 portfolio strategy. The ZIP code's median home value stands at $465,735, with only a 0.2% price-cut share, indicating that homes in this area are relatively stable and do not often go on sale. This stability, coupled with a 16-day days-on-market (DOM), suggests that properties here appreciate over time without requiring significant discounts or extended listing periods.
The cash flow dynamics in ZIP 06614 are also favorable. The Fair Market Rent (FMR) for Section 8 in fiscal year 2024 is set at $2220, which is higher than the market rent of $1,798. This means that landlords participating in the Section 8 program can expect better rental income compared to market rates, thereby enhancing their cash flow. However, the primary focus should be on the long-term appreciation potential rather than short-term cash flow gains.
The ZIP code's median income of $110,943 and 11.5% renter share indicate a moderate level of demand for rental properties, but these factors alone do not make it a strong diversifier. Instead, they support the argument for appreciation as the dominant strategy. Higher median incomes suggest that residents have the financial capability to afford rising property values, contributing to the overall appreciation of the housing market in the area.
In summary, ZIP 06614 is well-suited for an appreciation play within a Section 8 portfolio strategy due to its stable median home value, low price-cut share, and short DOM. Landlords can benefit from the higher FMR compared to market rents while positioning themselves for long-term capital growth.
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.