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 | $1,800 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,510 |
| 3 Bedrooms | $3,140 |
| 4 Bedrooms | $3,740 |
| 5 Bedrooms | $4,338 |
| 6 Bedrooms | $4,859 |
| 7 Bedrooms | $5,248 |
| 8 Bedrooms | $5,510 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,960 | $261,274 | 0.75% | D |
| 2BR | $2,510 | $325,285 | 0.77% | D |
| 3BR | $3,140 | $392,116 | 0.8% | C |
| 4BR | $3,740 | $515,150 | 0.73% | D |
| 5BR | $4,338 | $548,482 | 0.79% | D |
U.S. Census Bureau data (2024)
The median income in ZIP 06716, Wolcott, Connecticut, stands at $111,225. Given the market rate for rent at $1,464 according to the Census ACS, a household in this area can indeed afford the typical rent without significant financial strain. However, comparing this to the voucher payment standard of $2,000 for Fiscal Year 2024, which is based on Fair Market Rent (FMR), it becomes evident that there is a notable difference in what landlords might expect from voucher recipients versus those paying out-of-pocket.
With only 11.7% of the 16,113 population being renters, the competition among landlords in Wolcott is relatively low compared to densely populated areas. This means that landlords have a smaller pool of potential tenants to draw from, but also that they can command higher rents due to the relative affluence of the area. The affordability gap, where the FMR exceeds the market rate, suggests that voucher holders might find it easier to secure housing in this ZIP code, potentially increasing competition for landlords who accept vouchers.
Landlords in Wolcott must weigh the benefits of accepting vouchers against the higher guaranteed payments. While vouchers ensure timely and consistent rent payments, they cap the amount landlords can receive at $2,000, which is significantly above the current market rate. For those looking to maximize immediate rental income, focusing on cash-paying tenants could be more profitable given the current market conditions. However, the security and reliability of voucher payments should not be overlooked, especially if the goal is to maintain a stable tenant base.
In conclusion, landlords in ZIP 06716 should consider the dynamics of both cash-paying and voucher tenants carefully. The decision to prioritize one over the other should be based on individual business needs and risk tolerance. For landlords seeking to balance between income maximization and tenant stability, a mixed strategy might prove most effective.
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.