Section 8 Fair Market Rent (FMR) for ZIP 06810 - 2027

Investment Score for ZIP 06810

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,690
1 Bedroom	$2,100
2 Bedrooms	$2,430
3 Bedrooms	$2,910
4 Bedrooms	$3,620
5 Bedrooms	$4,199
6 Bedrooms	$4,703
7 Bedrooms	$5,079
8 Bedrooms	$5,333

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,100	$214,190	0.98%	C
2BR	$2,430	$371,711	0.65%	D
3BR	$2,910	$528,084	0.55%	F
4BR	$3,620	$580,846	0.62%	D
5BR	$4,199	$620,818	0.68%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 06810 (Danbury, CT) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Danbury, CT, as of 2026, indicate that a two-bedroom unit is priced at $2,460 per month. This represents 38.4% of the median household income of $76,933, which suggests that it is a reasonable rent relative to local incomes. However, the actual median rent for a two-bedroom unit on Zillow is $363,386, translating to a monthly rent of approximately $15,141 based on a price-to-rent ratio of 12.3x. This significant disparity between the FMR and actual rents highlights a critical constraint for Section 8 voucher holders. They would find it challenging to secure housing in Danbury due to the high actual rental costs compared to the FMR set by HUD. #### Affordability & Renter Profile Danbury has a population of 55,833, with 59.5% of residents being renters. This indicates a strong rental market, but also one that is potentially tight given the high actual rental costs. The occupancy rate of 94.7% further supports the notion that there is limited availability of rental units, making it a competitive environment for both tenants and landlords. Given the high rent-to-income ratio, it is likely that many renters in Danbury are facing affordability challenges. Section 8 voucher holders, who typically have lower incomes, would struggle to find units within their budget, especially considering the high actual rents. #### Investor Angle From an investor perspective, the ZIP code 06810 presents a mixed picture. While the actual rental prices are high, the FMRs are significantly lower. For instance, a two-bedroom unit at the FMR of $2,460 might not generate sufficient cash flow if the investor is pricing units based on the actual market rates. The price-to-FMR ratio of 12.3x suggests that the market is overvalued relative to the FMR, which could be a risk factor for investors relying solely on Section 8 vouchers for tenant sourcing. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider other factors such as property taxes, insurance, maintenance, and vacancy rates. Assuming a conservative estimate of 30% of the FMR for these expenses, a landlord would net around $1,722 per month for a two-bedroom unit. This is still below the actual market rent, indicating that properties rented at FMR levels would likely underperform financially compared to market-rate rentals. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like one-bedroom apartments, which have an FMR of $2,060. This could provide a better balance between affordability for Section 8 voucher holders and potential cash flow for investors. At a conservative expense ratio of 30%, the net income would be around $1,442 per month, which is still below market rates but closer to the actual rental costs. 2. **Consider Mixed-Income Developments**: Investors might want to explore developing mixed-income properties where some units are rented at FMR levels and others at market rates. This approach can help balance the financial impact of lower rents on Section 8 units with higher rents from market-rate units, providing a more stable overall cash flow. 3. **Engage with Local Housing Authorities**: To navigate the constraints of FMR, investors should engage closely with local housing authorities to understand the demand and supply dynamics for Section 8 vouchers. This can help in securing a steady stream of tenants and managing expectations regarding rental income. #### Bottom Line Given the high actual rental prices and the relatively low FMRs, the recommendation for Section 8-focused investors in ZIP code 06810 would be to **skip** this market unless they can develop mixed-income properties or focus on smaller units. The tight rental market and high occupancy rate suggest that there is a significant gap between what voucher holders can afford and what is available on the market. Therefore, investing in this area purely for Section 8 tenants would likely result in financial underperformance. In summary, while Danbury, CT, has a robust rental market, the mismatch between FMR and actual rents makes it challenging for Section 8 voucher holders to find affordable housing. Consequently, investors should carefully consider their strategy before entering this market.

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.