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 | $1,810 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,170 |
| 4 Bedrooms | $3,830 |
| 5 Bedrooms | $4,443 |
| 6 Bedrooms | $4,976 |
| 7 Bedrooms | $5,374 |
| 8 Bedrooms | $5,643 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,220 | $317,664 | 0.7% | D |
| 2BR | $2,620 | $508,238 | 0.52% | F |
| 3BR | $3,170 | $711,501 | 0.45% | F |
| 4BR | $3,830 | $930,772 | 0.41% | F |
| 5BR | $4,443 | $1,192,494 | 0.37% | F |
U.S. Census Bureau data (2024)
ZIP code 06825 is located in the town of Fairfield, Connecticut, a part of the larger Fairfield County area known for its affluent communities and suburban charm. With a total population of 21,982, it's a relatively small and tight-knit neighborhood where 19.1% of residents are renters. The median household income here is notably high at $135,504, reflecting the area's economic prosperity. This wealth is further underscored by the median home value, which stands at an impressive $729,917.
The rental market in ZIP 06825 is robust but not overwhelming, given the high percentage of owner-occupied homes. According to the Fair Market Rent (FMR) for the fiscal year 2024, the government sets the maximum amount for a voucher at $2,550 per month. However, the actual market rent, as indicated by Zillow's Observed Rental Index (ZORI), is slightly higher at $2,731 per month. This suggests that there is a small premium for rental properties above the subsidized rate, indicating a potential opportunity for landlords who can manage properties efficiently to capture this difference.
Given these economic conditions, ZIP 06825 could be suitable for both hands-off voucher operators and hands-on value-add buyers. For those looking for a passive investment strategy, the stable demand for subsidized housing and the high median income provide a reliable tenant pool, ensuring low vacancy rates and timely rent payments. On the other hand, for investors willing to engage actively in property management and improvements, the slight gap between FMR and market rents offers a chance to enhance returns by adding value to their properties through renovations or upgrades that justify higher rents.
In conclusion, ZIP 06825 presents a balanced environment for real estate investment, especially under the Section 8 program. Its affluent demographic and modest rental market dynamics make it an attractive location for either hands-off or hands-on investment approaches, depending on the landlord's preference and capabilities.
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.