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 | $1,250 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,330 | $127,210 | 1.05% | B |
| 2BR | $1,740 | $237,007 | 0.73% | D |
| 3BR | $2,180 | $329,247 | 0.66% | D |
| 4BR | $2,590 | $355,632 | 0.73% | D |
| 5BR | $3,004 | $391,135 | 0.77% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 06708, Waterbury, CT, are defined by the SAFMR (Small Area Fair Market Rent) and the local market rent conditions. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1380. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent for a unit of this size in this specific ZIP code. In contrast, the local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,670.
A landlord participating in the Section 8 program should understand that the total reimbursement includes both the tenant's portion of the rent and any utility allowances. The tenant is typically responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 per month for a household eligible for Section 8 in this area, the tenant's contribution would be $450. This amount is added to the voucher payment to determine the total rent subsidy.
The utility allowance varies but can be estimated around $200-$300 per month, depending on the household's needs and the specifics of the voucher contract. Therefore, the total reimbursement a landlord might receive could range from $1580 to $1680 per month. This calculation is based on the $1380 voucher payment plus the tenant's $450 contribution and an estimated utility allowance of $200-$300.
In ZIP 06708, landlords will notice a gap between the market rent and the reimbursement rates. With the local market rent at $1,670, the typical gap or surplus for a two-bedroom apartment would be a shortfall of about $90 to $190 per month. This means that while landlords are guaranteed a certain level of rental income through the voucher program, they may need to adjust their expectations if they aim to match the local market rent levels.
To summarize, landlords in ZIP 06708 can expect a reimbursement of up to $1680 for a two-bedroom apartment when combining the SAFMR, tenant contribution, and utility allowances. However, given the local market rent of $1,670, landlords will generally face a small shortfall when compared to non-voucher rents. This shortfall underscores the importance of understanding the economic realities of the Section 8 program before deciding to participate.
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.