Section 8 Fair Market Rent (FMR) for ZIP 06787 - 2027

Location: Northwest Hills Planning Region, CT | Metro: Waterbury-Shelton, CT MSA

Investment Score for ZIP 06787

Monthly Rent (2BR)

$1,610

Median Price (2BR)

$247,200

1% Rule

0.65%

Annual Yield

7.82%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,130
1 Bedroom	$1,310
2 Bedrooms	$1,610
3 Bedrooms	$1,990
4 Bedrooms	$2,350
5 Bedrooms	$2,726
6 Bedrooms	$3,053
7 Bedrooms	$3,297
8 Bedrooms	$3,462

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,610	$247,200	0.65%	D
3BR	$1,990	$374,150	0.53%	F
4BR	$2,350	$436,157	0.54%	F
5BR	$2,726	$452,141	0.6%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,509

Median Household Income

$103,102

Housing Units

3,362

Renter Percentage

22.3%

Occupancy Rate

92.3%

Renter Occupied

691

ZIP 06787, located in Thomaston, Connecticut, within the Northwest Hills Planning Region and part of the larger CT metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) set by HUD for the CT metro area, which stands at $1,490 for fiscal year 2026, and the actual market rent in ZIP 06787, which is $1,037. This difference allows landlords to secure higher rents through Section 8 vouchers compared to what they could charge in the open market.

The median home value in ZIP 06787 is $342,389, indicating that the area is primarily composed of owner-occupied homes rather than rentals. However, the presence of a 22.3% renter share provides a sufficient tenant pool for landlords interested in Section 8 properties. Additionally, the median income of $103,102 suggests that residents have the financial stability to maintain timely rental payments, reducing the risk of delinquency or vacancy.

To further illustrate why ZIP 06787 is a strong cash-flow anchor, consider the following points:

Stable Demand: The relatively high renter share ensures consistent demand for rental units, making it easier for landlords to fill vacancies.
Economic Stability: With a median income significantly above the national average, tenants are likely to be reliable and able to pay their portion of the rent.
Price Advantage: Landlords can leverage the difference between the FMR and market rent to maximize their cash flow, ensuring profitability even when the local rental market is sluggish.

In conclusion, ZIP 06787 offers a solid foundation for a Section 8 portfolio due to its favorable cash-flow characteristics. The substantial gap between the FMR and market rent, combined with the economic stability of its residents, makes it a reliable choice for landlords seeking steady income streams.

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.