Location: Waterbury-Shelton, CT | Metro: Waterbury-Shelton, 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 | $1,200 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $237,790 | 0.71% | D |
| 3BR | $2,100 | $299,308 | 0.7% | D |
| 4BR | $2,500 | $323,162 | 0.77% | D |
U.S. Census Bureau data (2024)
59.2% of residents in ZIP 06706 rely on rental housing, indicating a strong demand for apartments and single-family rentals. The $1320 Fair Market Rent (FMR) set for zip FY 2024 provides a benchmark for rental subsidies, ensuring that landlords receive a fair compensation for their properties. However, the $1,350 Zillow Observed Rent Index (ZORI) suggests that the market rents are slightly higher than the FMR, which could pose a challenge for tenants seeking Section 8 housing. Despite this, the median home value of $274,450 indicates that Waterbury, CT remains an affordable market for both homeowners and investors looking to purchase rental properties. The median income of $52,242 supports the notion that many residents might find it difficult to afford homes at the median value without assistance, making Section 8 vouchers particularly valuable for securing tenants. While the data does not provide specific insights into days on market (DOM) or the percentage of price-cut shares, the high renter share and the slight disparity between market rents and FMR suggest that landlords who can offer competitive pricing will likely attract tenants quickly. Given these figures, landlords in Waterbury should consider participating in the Section 8 program to stabilize occupancy and ensure a steady income stream.
The verdict on Section 8 participation in ZIP 06706 is positive, as the program helps meet the needs of a significant portion of the population while providing a reliable source of income for landlords.
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.