Location: Waterbury-Shelton, CT | Metro: Waterbury-Shelton, 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 | $1,150 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $274,829 | 0.59% | F |
| 3BR | $2,000 | $345,113 | 0.58% | F |
| 4BR | $2,380 | $383,271 | 0.62% | D |
U.S. Census Bureau data (2024)
The median income in ZIP 06786, which encompasses Plymouth, Connecticut, stands at $87,306. This figure is critical when considering the local rental market, where the average monthly rent is reported to be $1,270 according to Census ACS data. To frame this from a renter's perspective, let's break down the numbers.
A household earning the median income would allocate approximately 31% of their gross monthly income toward rent at the market rate. This calculation is based on the assumption that the median income is earned evenly throughout the year, meaning a monthly income of roughly $7,275. Paying $1,270 for rent leaves the typical household with $5,005 per month for all other expenses.
However, the Federal Market Rent (FMR) standard for ZIP 06786 in fiscal year 2024 is set at $1,650. This represents the maximum amount that Section 8 vouchers will cover for a unit. Given the actual market rate of $1,270, it becomes evident that the FMR exceeds the current average rent in the area by $380. This means that tenants using Section 8 vouchers could potentially afford units that cost more than the average market rate.
With 25.8% of the 9,768 population being renters, there is a notable segment of the community looking for affordable housing options. The affordability gap, defined by the difference between the FMR and the actual market rate, suggests that landlords might face less competition if they accept Section 8 vouchers, especially for units priced above the average market rate but still below the FMR.
Landlords considering whether to accept cash-paying tenants or those with Section 8 vouchers should weigh the benefits of both strategies. While cash-paying tenants might offer quicker lease-ups and fewer administrative burdens, the higher payment standard of the FMR could provide a more stable and reliable source of income through voucher recipients. The decision should be informed by the specific dynamics of the local market, including vacancy rates and tenant preferences.
Takeaway: In ZIP 06786, landlords who accept Section 8 vouchers may have an advantage in securing tenants willing to pay up to $1,650 per month, which is significantly higher than the current market rate of $1,270. This strategy can help mitigate the risks associated with tenant turnover and ensure a steady stream of income.
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.