Section 8 Fair Market Rent (FMR) for ZIP 06854 - 2027

Location: Bridgeport-Stamford-Danbury, CT | Metro: Bridgeport-Stamford-Danbury, CT MSA

Investment Score for ZIP 06854

F
Monthly Rent (2BR)
$2,400
Median Price (2BR)
$461,755
1% Rule
0.52%
Annual Yield
6.24%

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$1,670
1 Bedroom$2,070
2 Bedrooms$2,400
3 Bedrooms$2,880
4 Bedrooms$3,570
5 Bedrooms$4,141
6 Bedrooms$4,638
7 Bedrooms$5,009
8 Bedrooms$5,259

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 $2,070 $307,790 0.67% D
2BR $2,400 $461,755 0.52% F
3BR $2,880 $668,300 0.43% F
4BR $3,570 $790,344 0.45% F
5BR $4,141 $1,052,525 0.39% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
32,118
Median Household Income
$86,679
Housing Units
12,588
Renter Percentage
52.9%
Occupancy Rate
93.5%
Renter Occupied
6,231

The market in ZIP 06854, Norwalk, CT, presents a dynamic environment with specific indicators pointing towards a balanced yet competitive housing landscape. The Fair Market Rent (FMR) for the area stands at $2,310 for the fiscal year 2024, while the actual market rent, as indicated by Zillow's Observed Rental Index (ZORI), is slightly higher at $2,701. This suggests that the rental market is robust and slightly exceeds the government-set benchmarks.

A key metric to consider is the price-cut share, which is currently at 0.1%. This low figure implies that very few properties are being discounted, indicating a strong seller's market where landlords can maintain their asking rents without significant concessions. Additionally, the median home value in Norwalk is $561,160, reflecting a stable property valuation that supports steady investment opportunities for landlords and small-portfolio investors.

The 52.9% renter share highlights a substantial portion of the population relying on rental housing, suggesting ongoing long-term housing pressure. In such a scenario, landlords benefit from a consistent demand for rental units, but they must also be prepared to compete with other rental properties to attract tenants. This high renter share could indicate a potential for increasing rental rates over time as demand remains steady or grows.

The lack of specific days on the market (DOM) data might imply that the market turnover is rapid, or that there is little inventory available, both scenarios favoring a tight rental market. Given the snapshot of data, it appears that demand for rental housing in Norwalk is robust, and landlords can expect to see good occupancy rates and reasonable rent levels.

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.