Location: Northwest Hills Planning Region, CT | Metro: Northwest Hills Planning Region, CT
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 | $1,010 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $356,817 | 0.41% | F |
| 3BR | $1,880 | $464,028 | 0.41% | F |
| 4BR | $2,120 | $621,835 | 0.34% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 06750 in Litchfield, Connecticut, reveals a market that falls into the category of moderate yield with relatively stable cash flow characteristics. The key figures guiding this assessment include the Fair Market Rent (FMR) set at $1,360 for the metro area in fiscal year 2026, the average market rent at $703, and the median home value at $431,598.
On the yield axis, the disparity between the FMR and the market rent suggests an opportunity for higher-than-average returns on investment. However, the actual rental income potential is tempered by the lower market rent figure, indicating that while there is room for higher yields, the market does not fully support the FMR. This creates a scenario where landlords can aim for slightly above-market rents but must be cautious about pricing too aggressively.
Regarding stability, the 33.8% rate of renters provides a reasonable tenant pool, which is essential for maintaining consistent cash flow. The absence of data on days on market (DOM) indicates that there isn't a significant issue with vacancy rates, although this lack of information is a minor concern. The median household income of $85,000 supports the ability of tenants to afford rent, further stabilizing the market.
To summarize, ZIP 06750 offers a balance between yield and stability. Landlords can expect moderate yields without the risks associated with highly volatile markets. The income level and rental rates suggest a steady cash flow environment, suitable for those seeking a reliable investment rather than a high-risk, high-reward scenario.
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.