Location: Bridgeport-Stamford-Danbury, 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 | $1,850 |
| 1 Bedroom | $2,290 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,950 |
| 5 Bedrooms | $4,582 |
| 6 Bedrooms | $5,132 |
| 7 Bedrooms | $5,543 |
| 8 Bedrooms | $5,820 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $520,437 | 0.51% | F |
| 3BR | $3,180 | $670,257 | 0.47% | F |
| 4BR | $3,950 | $868,365 | 0.45% | F |
| 5BR | $4,582 | $1,221,501 | 0.38% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2,570 for ZIP 06784 (Sherman, CT) can sufficiently cover the mortgage on a home priced at $698,549. The FMR represents the maximum amount that a landlord can charge for a rental unit under the Section 8 program. However, the FMR does not directly correlate with mortgage payments, which depend on factors such as interest rates and loan terms. To accurately assess this, one would need to calculate the monthly mortgage payment based on current interest rates and loan duration.
The second objection could be whether there is enough rental demand at a vacancy rate of 5.5%. Vacancy rates below 6% generally indicate a strong rental market, suggesting that there is indeed sufficient demand. This low vacancy rate means that properties in Sherman, CT, are likely to remain occupied, providing steady income for landlords.
A third concern might be whether housing vouchers will keep pace with market rents, currently at $2,276. While the FMR is set at $2,570, it's important to note that voucher amounts are determined by the local Housing Authority and can vary. The data does not provide a direct comparison between voucher amounts and market rents. However, given that the FMR is slightly higher than the average market rent, it suggests that vouchers should generally cover the costs, assuming they are adjusted accordingly.
In summary, while the FMR of $2,570 should theoretically cover the cost of renting out a property in Sherman, CT, the actual ability to cover a mortgage payment on a home priced at $698,549 requires further calculation. The 5.5% vacancy rate indicates a healthy rental market, supporting the likelihood of maintaining occupancy. Lastly, although the FMR exceeds the average market rent, the precise alignment of voucher amounts with these rents remains unclear without additional data.
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.