Location: Waterbury-Shelton, CT | Metro: New Haven, 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 | $1,260 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $261,356 | 0.68% | D |
| 3BR | $2,200 | $363,219 | 0.61% | D |
| 4BR | $2,620 | $417,456 | 0.63% | D |
| 5BR | $3,039 | $446,992 | 0.68% | D |
U.S. Census Bureau data (2024)
The ZIP code 06770, located in Naugatuck, CT, presents an interesting balance between yield and stability for real estate investors. With a Fair Market Rent (FMR) of $1,480 for the fiscal year 2024, it falls below the local market rent of $1,748, indicating a potential for higher yields when leveraging the Section 8 program. However, the median home value stands at $346,264, which is significantly higher than the FMR and market rent figures. This suggests that while rental income might be lower compared to market rates, the property values themselves offer substantial equity appreciation opportunities.
In terms of stability, the ZIP code shows a moderate level of tenant reliability. The percentage of renters at 32.2% indicates a reasonable demand for rental properties, but it's not exceptionally high. A 26-day Days on Market (DOM) suggests that listings typically move quickly once they're put up for rent, which can be beneficial for reducing vacancy periods. The average household income of $96,208 provides a solid financial foundation for tenants, making it less likely for them to default on rent payments.
Based on these figures, ZIP 06770 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. While the yield is attractive due to the gap between FMR and market rents, the relatively high home value and moderate renter population imply a market that prioritizes long-term investment over quick flips. The low DOM and decent income levels further support this classification, indicating a stable environment where properties are likely to remain occupied and generate consistent cash flow.
To summarize, the key figures driving this assessment include the FMR of $1,480, market rent of $1,748, median home value of $346,264, 32.2% renters, 26-day DOM, and $96,208 average income. These metrics collectively point to a market suitable for those seeking reliable, long-term rental investments rather than high-risk, high-reward opportunities.
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.