Location: Bridgeport-Stamford-Danbury, CT | Metro: Bridgeport-Stamford-Danbury, 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 | $1,560 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,260 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,240 |
| 5 Bedrooms | $3,758 |
| 6 Bedrooms | $4,209 |
| 7 Bedrooms | $4,546 |
| 8 Bedrooms | $4,773 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,890 | $255,851 | 0.74% | D |
| 2BR | $2,260 | $401,157 | 0.56% | F |
| 3BR | $2,740 | $552,309 | 0.5% | F |
| 4BR | $3,240 | $694,503 | 0.47% | F |
| 5BR | $3,758 | $734,076 | 0.51% | F |
U.S. Census Bureau data (2024)
Bethel, CT, ZIP code 06801, is characterized by a population of 20,796 residents, with 24.8% of them being renters. The median household income in this area is notably high at $116,541, reflecting a prosperous community. Median home values are also substantial, sitting at $550,718, indicating a robust housing market.
The rental landscape in Bethel is defined by a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 06801 is set at $1,880, while the Census ACS reports an average market rent of $1,640. This suggests that landlords who participate in the Section 8 program can expect higher guaranteed rents compared to the local market rates, providing a stable income stream.
Given these economic factors, ZIP 06801 is well-suited for both hands-off voucher operators and hands-on value-add buyers. Voucher operators can benefit from the higher FMR rates, which ensure a steady and predictable cash flow, particularly valuable in a high-income neighborhood where tenants might be more reliable. On the other hand, value-add buyers could capitalize on the strong underlying property values and the potential to increase rents above the FMR once the initial lease term ends, thereby enhancing their investment returns.
To summarize, the demographic and economic profile of Bethel, CT, ZIP 06801, makes it a compelling location for Section 8 investments. With a healthy mix of homeowners and renters, combined with a favorable income level and property values, the area presents opportunities for both passive and active management strategies.
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.