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 | $1,130 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,310 | $184,745 | 0.71% | D |
| 2BR | $1,610 | $317,772 | 0.51% | F |
| 3BR | $1,990 | $420,036 | 0.47% | F |
| 4BR | $2,350 | $564,084 | 0.42% | F |
| 5BR | $2,726 | $606,561 | 0.45% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 06795, which includes Watertown, Connecticut, is set at $1,720 for the metro area fiscal year 2026. This figure represents the payment standard for Section 8 rentals and is not the amount tenants will pay; rather, it's the maximum subsidy the government will provide to cover rent and utilities.
In comparison, the average monthly rent reported by the Census Bureau's American Community Survey (ACS) for the same area is $1,218. This indicates that the FMR is higher than the typical market rate, potentially offering landlords a competitive advantage when participating in the Section 8 program.
Watertown has a relatively low renter share of 10.4%, meaning that only about one in ten residents are renters. However, this does not necessarily mean low demand for Section 8 properties. The program attracts individuals who rely on housing assistance, and these individuals often seek stable housing options regardless of the overall renter population size.
To put the financials into perspective, the median home value in Watertown is approximately $421,104. This figure can help you estimate the potential acquisition cost if you're looking to purchase a property for your first Section 8 rental. While the median home value gives you an idea of the price range, remember that the actual cost of a rental property could be lower depending on its condition and location.
Before proceeding with a Section 8 rental, ensure that the property meets the Housing Quality Standards (HQS). These standards are essential for eligibility in the program and cover basic safety and habitability requirements. Verifying HQS compliance is a critical step to avoid delays and ensure that your property is ready for occupancy once approved.
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.