Location: Northwest Hills Planning Region, CT | Metro: Bridgeport-Stamford-Danbury, 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 | $1,650 |
| 1 Bedroom | $2,010 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,430 |
| 5 Bedrooms | $3,979 |
| 6 Bedrooms | $4,456 |
| 7 Bedrooms | $4,812 |
| 8 Bedrooms | $5,053 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,010 | $197,904 | 1.02% | B |
| 2BR | $2,400 | $320,730 | 0.75% | D |
| 3BR | $2,900 | $474,032 | 0.61% | D |
| 4BR | $3,430 | $627,581 | 0.55% | F |
| 5BR | $3,979 | $740,392 | 0.54% | F |
U.S. Census Bureau data (2024)
New Milford, CT, located in ZIP code 06776, is a residential area with a total population of 27,010. The neighborhood has a relatively low rental rate at 19.9%, indicating that it is predominantly owner-occupied. Median household income stands at $104,112, suggesting a middle to upper-middle-class community. The median home value of $458,448 further supports this, showing that the homes in the area are valued quite highly.
Turning to the economic landscape for rentals, the Fair Market Rent (FMR) set by HUD for the metro area for fiscal year 2026 is $2,660. In contrast, the actual market rent, as measured by ZORI (Zillow Observed Rent Index), is significantly lower at $2,044. This discrepancy between the FMR and the market rent presents an opportunity for landlords and small-portfolio investors who can leverage the higher FMR to attract Section 8 tenants while maintaining a competitive edge in the local rental market.
The characteristics of New Milford suggest that it might be better suited for a hands-on value-add buyer rather than a hands-off voucher operator. Given the high median home values and incomes, there is potential for improving property quality and increasing rents, which could appeal to a broader range of tenants beyond those relying solely on vouchers. However, the presence of Section 8 tenants could still provide a stable income stream, especially if the investor focuses on properties that align closely with the FMR without exceeding the market rent too much.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.