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 | $2,190 |
| 1 Bedroom | $2,650 |
| 2 Bedrooms | $3,180 |
| 3 Bedrooms | $3,870 |
| 4 Bedrooms | $4,320 |
| 5 Bedrooms | $5,011 |
| 6 Bedrooms | $5,612 |
| 7 Bedrooms | $6,061 |
| 8 Bedrooms | $6,364 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,650 | $754,545 | 0.35% | F |
| 2BR | $3,180 | $1,134,333 | 0.28% | F |
| 3BR | $3,870 | $1,639,124 | 0.24% | F |
| 4BR | $4,320 | $2,387,642 | 0.18% | F |
| 5BR | $5,011 | $3,784,166 | 0.13% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 06820, located in Darien, Connecticut, reveals a competitive rental landscape. The HUD Fair Market Rent (FMR) for the area is set at $3940 per month for fiscal year 2024. In contrast, the Zillow Observed Rent Index (ZORI), which reflects actual market rents, stands at $4846 per month. This means that landlords accepting Section 8 vouchers will experience marginal cash flow at the HUD FMR rate. Only premium units, those that command higher rents, will ensure a positive cash flow position relative to the HUD FMR.
The median home value in ZIP 06820 is $2,317,611. Using this figure, we can calculate the rent-to-price ratio, which is approximately 2.1%. This ratio indicates that the cost of renting is relatively low compared to the value of owning a home in the area. However, it also suggests that the rental market is less dynamic when compared to the housing market, as the gap between rent and home values is substantial.
The 10-day median Days on Market (DOM) and the 0% price-cut share are indicative of a strong rental market. Properties in this area are typically leased quickly without the need for rent reductions, which supports the idea that there is a high demand for rentals. This quick turnover and lack of price cuts suggest that the rental market is stable and likely to remain so, providing a reliable income stream for investors.
In conclusion, the strongest angle for Section 8 investors in ZIP 06820 is stability. While cash flow may be marginal at the HUD FMR rate, the robust demand for rentals ensures a consistent income source, making it an attractive investment for those seeking steady returns rather than speculative gains.
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.