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 | $2,510 |
| 1 Bedroom | $3,110 |
| 2 Bedrooms | $3,600 |
| 3 Bedrooms | $4,320 |
| 4 Bedrooms | $5,360 |
| 5 Bedrooms | $6,218 |
| 6 Bedrooms | $6,964 |
| 7 Bedrooms | $7,521 |
| 8 Bedrooms | $7,897 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,110 | $455,319 | 0.68% | D |
| 2BR | $3,600 | $1,066,348 | 0.34% | F |
| 3BR | $4,320 | $1,540,434 | 0.28% | F |
| 4BR | $5,360 | $2,189,973 | 0.24% | F |
| 5BR | $6,218 | $3,380,517 | 0.18% | F |
U.S. Census Bureau data (2024)
New Canaan, CT, with a ZIP code of 06840, is characterized by a relatively affluent suburban community. The total population stands at 20,870, where only 16.3% are renters, indicating a predominantly owner-occupied environment. This is further underscored by the median household income of $250,001, which is well above the national average, reflecting a high standard of living. The median home value in this area is impressively high at $2,105,011, placing it among the most expensive housing markets in the country.
Turning to the economic realities of renting, the Fair Market Rent (FMR) for ZIP 06840 as of fiscal year 2024 is set at $3,260. However, the actual market rent, measured by Zillow's ZORI index, is significantly higher at $6,950 per month. This stark contrast suggests that Section 8 vouchers, which are capped at the FMR, would cover less than half of the typical market rent in this area. As such, landlords in New Canaan, CT, who rely solely on Section 8 vouchers would likely face a financial shortfall for their rental properties.
The practical implications of these figures point towards a scenario where hands-off voucher operators might struggle to find profitability in this market. Instead, the ZIP 06840 environment is better suited for hands-on value-add buyers who can leverage the high-end nature of the local real estate market. These investors could focus on enhancing property values through renovations and strategic management practices, thereby attracting tenants willing to pay market rates that far exceed the voucher limits. In summary, while Section 8 vouchers provide a stable tenant base, the economic landscape of ZIP 06840 demands active engagement and a strategy focused on maximizing property value to ensure financial success.
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.