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 | $1,570 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,260 |
| 5 Bedrooms | $3,782 |
| 6 Bedrooms | $4,236 |
| 7 Bedrooms | $4,575 |
| 8 Bedrooms | $4,804 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $457,136 | 0.48% | F |
| 3BR | $2,740 | $530,424 | 0.52% | F |
| 4BR | $3,260 | $663,599 | 0.49% | F |
| 5BR | $3,782 | $817,571 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 06762, located in Middlebury, CT, presents an interesting mix of yield and stability that can be crucial for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1730, which is significantly higher than the market rent of $398. This stark contrast suggests a high-yield potential if the property can qualify for Section 8 or other rental assistance programs.
However, the median home value of $541,235 indicates a relatively expensive market. This high cost might limit the pool of eligible tenants under the Section 8 program, who typically have lower incomes. The average household income in the area is $133,487, further supporting the notion that it could be challenging to find tenants with low enough incomes to participate in Section 8.
On the stability axis, only 12.2% of residents are renters, which implies a primarily owner-occupied market. This low percentage of renters could indicate a less stable rental market, as there may not be a large enough tenant base to ensure consistent occupancy. Additionally, the lack of data on days on market (DOM) suggests that there is insufficient information to gauge how quickly properties are rented out, adding another layer of uncertainty to the market's stability.
Given these factors, ZIP 06762 does not fit neatly into a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it appears to be a niche market where the potential for high yields through Section 8 exists but is tempered by the challenges of finding eligible tenants and maintaining stable occupancy. Investors should carefully consider the balance between the high FMR and the limited rental market before making investment decisions.
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.