Location: Northwest Hills Planning Region, CT | Metro: Northwest Hills Planning Region, CT
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 | $1,040 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,230 | $155,766 | 0.79% | D |
| 2BR | $1,500 | $250,145 | 0.6% | F |
| 3BR | $1,980 | $315,540 | 0.63% | D |
| 4BR | $2,270 | $375,291 | 0.6% | D |
| 5BR | $2,633 | $398,401 | 0.66% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 06790, Torrington, CT, reveals several key points regarding its suitability for Section 8 investments. Firstly, the rent math does not favor Section 8 participation. The Fair Market Rent (FMR) for the CT metro area in fiscal year 2026 is set at $1,530, whereas the market rent, measured by ZORI, stands at $1,597. This means that landlords will receive less in rental income through Section 8 than what they could potentially earn on the open market.
Secondly, the acquisition of properties in this area appears to be relatively affordable. With a median home value of $294,912, potential investors can enter the market without facing exorbitant costs. Additionally, the average days on market (DOM) is 26, indicating a brisk pace of sales. The low price-cut share of 0.2% suggests that homes are selling close to their asking prices, which is a positive sign for maintaining property values.
Lastly, there is a notable tenant demand in Torrington. The population of 35,566 includes a significant 33.9% renter share. This percentage represents a substantial number of potential tenants who might be interested in Section 8 housing. However, the demand must be weighed against the lower rental income compared to market rates.
In summary, while the acquisition cost and speed are favorable, and there is a reasonable tenant demand, the rent math does not align well with the goals of maximizing rental income. For investors looking to participate in Section 8, the focus should be on leveraging the lower acquisition costs and the strong local market conditions to offset the reduced rental income. Nonetheless, the decision to invest should consider the long-term implications of receiving $67 less per unit in monthly rental income compared to the market rate.
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.