Location: Waterbury-Shelton, CT | Metro: Waterbury-Shelton, CT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
U.S. Census Bureau data (2024)
The ZIP code 06702, located in Connecticut, presents a challenging landscape for renters given the stark contrast between their median income and the market rental rates. Households here earn a median income of $14,474, which is significantly lower than the market rate rent of $1,165. This makes it difficult for most residents to afford market-rate housing without substantial financial strain.
Comparatively, the Fair Market Rent (FMR) for the area, set at $1,210 for fiscal year 2024, aligns closely with the market rate but still exceeds the median income of the households. The FMR is used to determine the payment standard for housing vouchers, meaning that landlords who accept vouchers will receive payments close to the market rate, though not exactly matching it due to individual tenant circumstances.
With 92.0% of the 2,946 population being renters, the competition among landlords is intense. Many tenants rely on assistance programs such as Section 8 vouchers to cover their rent, creating a scenario where landlords must decide whether to prioritize voucher tenants or those able to pay in cash. The affordability gap means that landlords who do not accept vouchers may struggle to find tenants willing or able to pay the market rate without government assistance.
The takeaway for landlords is clear: accepting Section 8 vouchers can be a strategic advantage in securing tenants in ZIP 06702. While cash-paying tenants might offer higher flexibility, the reality is that the majority of potential renters require some form of subsidy to afford living in this area. Therefore, landlords should consider the benefits of steady, government-backed rental income over the risk of vacancies due to high market rates.
Data Sources: FMR data from HUD (2027). 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.