Location: Waterbury-Shelton, CT | Metro: Waterbury-Shelton, CT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,200 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 06705, Waterbury, CT, revolve around the SAFMR (Small Area Fair Market Rent) and local market conditions. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1470, which is the specific rate for this ZIP code. This means landlords who participate in the Section 8 program can expect to receive a maximum reimbursement of $1470 per month for a 2BR unit.
In contrast, the local market rent for a two-bedroom unit in ZIP 06705 is higher, running at $1694 according to ZORI (Zillow Observed Rent Index). This indicates that the SAFMR is below the actual market rent, creating a potential gap for landlords who choose to accept Section 8 vouchers.
A landlord's actual reimbursement from a voucher will be less than the SAFMR due to the tenant portion and utility allowances. Tenants typically contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1800 for a tenant, they would contribute $540 toward the monthly rent. The remaining amount is covered by the voucher, but only up to the SAFMR limit of $1470. Therefore, the landlord would receive $1470 minus the tenant contribution of $540, leaving a reimbursement of $930.
Utility allowances are additional payments made directly to the tenant to cover utilities, and these do not affect the landlord's reimbursement. However, they can influence the total rent a tenant can afford, indirectly affecting the landlord's income.
To summarize the economic impact on landlords, the typical reimbursement gap for a two-bedroom apartment in ZIP 06705 is $224 per month ($1694 - $1470), assuming the landlord charges the local market rate. Landlords should consider this gap when deciding whether to accept Section 8 vouchers. While participating in the program ensures steady rental income, it may also mean accepting a lower rate compared to the local market.
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.