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 | $1,560 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,260 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,240 |
| 5 Bedrooms | $3,758 |
| 6 Bedrooms | $4,209 |
| 7 Bedrooms | $4,546 |
| 8 Bedrooms | $4,773 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,740 | $785,329 | 0.35% | F |
| 4BR | $3,240 | $1,181,891 | 0.27% | F |
U.S. Census Bureau data (2024)
ZIP 06785, located in the Northwest Hills Planning Region of Connecticut's metro area, offers a unique opportunity for Section 8 real-estate investors. This ZIP code should be considered primarily as a cash-flow anchor within a diversified portfolio.
The median home value in ZIP 06785 stands at a robust $829,657. Given the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,600, the disparity between the market value and the rental income suggests that this ZIP code is not an ideal location for appreciation plays. The lack of data on price-cut share and days on market (DOM) further supports this conclusion, as these metrics would typically indicate a more active market with potential for capital gains.
With a renter share of 19.7%, ZIP 06785 has a moderate presence of renters, which aligns well with the Section 8 program's tenant base. However, the median income of $118,688 is relatively high, indicating that tenants here might have better access to alternative housing options compared to lower-income areas. This could affect the demand for Section 8 properties but does not negate their utility as a stable source of income.
The primary role of ZIP 06785 within a Section 8 portfolio is to provide consistent cash flow. While the appreciation potential may be limited due to the absence of specific growth indicators, the stability offered by this ZIP code can serve as a foundation for a broader investment strategy. Landlords and small-portfolio investors can rely on the steady rental income to balance out more volatile investments in other regions.
To maximize the effectiveness of ZIP 06785 as a cash-flow anchor, investors should focus on property management practices that ensure timely rent collection and minimize vacancy rates. Additionally, understanding the local housing market and tenant demographics will be crucial for maintaining a competitive edge in attracting and retaining Section 8 tenants.
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.