Location: Waterbury-Shelton, CT | Metro: Waterbury-Shelton, CT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,530 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,680 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 06798, Woodbury, Connecticut, provides a detailed look at the potential returns for landlords and small-portfolio investors. Using the Fair Market Rent (FMR) for a two-bedroom apartment set at $2,200 annually for fiscal year 2026, and the Census ACS reported market rent of $1,563 per month, we can derive the gross yield against the median home value of $521,900.
In the scenario where a landlord participates in the Section 8 program, the annualized rent would be $2,200 multiplied by 12 months, equating to $26,400 per year. This translates into an implied gross yield of approximately 5.06%, calculated by dividing the annual rent by the median home value ($26,400 / $521,900).
Contrastingly, if the landlord opts for the market rent of $1,563 per month, the annual rent would amount to $18,756, leading to an implied gross yield of about 3.60% ($18,756 / $521,900).
The higher gross yield associated with Section 8 participation is evident, standing at 5.06% compared to the market rent's 3.60%. However, the decision on whether to participate in the Section 8 program should also consider other factors such as the 22.1% renter density in Woodbury, which suggests that only a portion of the population is likely to be interested in rental properties. The N/A-day Days on Market (DOM) indicates that there is no available data on how quickly properties are rented out, which could affect the feasibility of relying solely on Section 8 tenants.
Given these figures, the Section 8 program offers a more attractive gross yield, but the decision must balance this with the local rental market dynamics and tenant preferences. Investors should carefully weigh these considerations before making a final decision.
Data Sources: FMR data from HUD (2027). 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.