Section 8 Fair Market Rent (FMR) for ZIP 06763 - 2027

Location: Northwest Hills Planning Region, CT | Metro: Northwest Hills Planning Region, CT

Investment Score for ZIP 06763

F
Monthly Rent (2BR)
$1,510
Median Price (2BR)
$425,944
1% Rule
0.35%
Annual Yield
4.25%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,050
1 Bedroom$1,240
2 Bedrooms$1,510
3 Bedrooms$1,990
4 Bedrooms$2,280
5 Bedrooms$2,645
6 Bedrooms$2,962
7 Bedrooms$3,199
8 Bedrooms$3,359

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,510 $425,944 0.35% F
3BR $1,990 $538,930 0.37% F
4BR $2,280 $669,681 0.34% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
2,151
Median Household Income
$109,853
Housing Units
1,316
Renter Percentage
10.7%
Occupancy Rate
72.0%
Renter Occupied
101

The classification of ZIP code 06763 in Morris, Connecticut, reveals a market that leans towards a steady cash flow zone rather than a high-yield/low-stability flip-style market. This conclusion is driven by the following figures:

On the yield axis, the Fair Market Rent (FMR) for the Morris area in fiscal year 2026 is set at $1,490. However, the actual market rent is lower at $1,204. The median home value is significantly higher at $517,828. These numbers suggest that while rental yields can be competitive, they do not drastically outpace the market average, indicating a moderate rather than high yield environment.

Moving to the stability axis, the percentage of renters is relatively low at 10.7%. This figure implies that homeownership is predominant in the area, which typically correlates with greater market stability. The median household income is substantial at $109,853, further supporting the idea that tenants in this area have a strong financial foundation, likely leading to lower vacancy rates and fewer delinquencies. The lack of available data on days on market (DOM) suggests either limited turnover or a lack of comprehensive tracking mechanisms, both of which could contribute to stability but also indicate less frequent opportunities for rapid property flips.

Given these metrics, ZIP 06763 presents itself as a zone with steady cash flow potential. While the yield is not exceptionally high, the strong median income and low percentage of renters point towards a stable investment environment. Landlords and small-portfolio investors seeking consistent returns over time would find this area favorable, as it minimizes risk associated with tenant turnover and economic volatility.

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.