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 | $2,290 |
| 1 Bedroom | $2,840 |
| 2 Bedrooms | $3,290 |
| 3 Bedrooms | $3,950 |
| 4 Bedrooms | $4,900 |
| 5 Bedrooms | $5,684 |
| 6 Bedrooms | $6,366 |
| 7 Bedrooms | $6,875 |
| 8 Bedrooms | $7,219 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,290 | $1,012,190 | 0.33% | F |
| 3BR | $3,950 | $1,577,945 | 0.25% | F |
| 4BR | $4,900 | $2,217,548 | 0.22% | F |
| 5BR | $5,684 | $3,098,140 | 0.18% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 06807, located in Greenwich, Connecticut, centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 06807 in fiscal year 2024 is set at $2730, while the Census ACS data indicates an average market rent of $2989. This creates a gap of $259, or approximately 9.5%, where landlords can either benefit from higher yields or face the costs associated with accepting housing vouchers that pay below the open-market rates.
Given that the FMR is lower than the market rent, landlords who accept Section 8 vouchers will be renting their properties at a rate that is below what they could potentially earn on the open market. This scenario makes it a yield play for landlords who are willing to take on the administrative burden and potential risks associated with voucher tenants. The lower payment from the government voucher program means landlords must weigh the benefits of guaranteed payments against the reduced rental income.
In the context of Greenwich, where only 30.2% of residents are renters and the median home value stands at $1,774,552, the decision to participate in the Section 8 program is particularly significant. The median household income in Greenwich is $192,115, which suggests a relatively affluent area. However, the disparity between the FMR and market rent highlights the financial reality faced by low-income renters who rely on housing vouchers.
Landlords in ZIP 06807 must consider the broader economic landscape when deciding whether to accept Section 8 tenants. While the median home value is exceptionally high, the median income indicates that there is a segment of the population that cannot afford market-rate rents. Therefore, the choice to accept Section 8 vouchers is not just about the immediate financial gain but also about the stability and reliability of rental income.
To summarize, the gap between the FMR of $2730 and the market rent of $2989 in ZIP 06807 presents a challenge for landlords. It requires them to decide if the benefits of participating in the Section 8 program outweigh the financial loss compared to renting at market rates. In a city with such high median home values and a significant portion of non-renters, this decision is critical for maintaining a balanced portfolio and ensuring steady cash flow.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.