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 | $1,990 |
| 1 Bedroom | $2,470 |
| 2 Bedrooms | $2,860 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $4,260 |
| 5 Bedrooms | $4,942 |
| 6 Bedrooms | $5,535 |
| 7 Bedrooms | $5,978 |
| 8 Bedrooms | $6,277 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,470 | $500,028 | 0.49% | F |
| 2BR | $2,860 | $1,032,541 | 0.28% | F |
| 3BR | $3,430 | $1,934,949 | 0.18% | F |
| 4BR | $4,260 | $2,894,929 | 0.15% | F |
| 5BR | $4,942 | $4,473,602 | 0.11% | F |
U.S. Census Bureau data (2024)
ZIP 06870 encompasses a portion of the affluent town of Greenwich, Connecticut, known for its high-end residential areas and proximity to New York City. With a population of 7,864, this neighborhood is characterized by a relatively low percentage of renters at 16.1%, indicating a predominantly owner-occupied community. The median household income in this area is over $250,000, reflecting the high economic status of its residents. The median home value stands at an impressive $2,545,198, placing it among the most expensive housing markets in the United States.
The rental economics in ZIP 06870 present a stark contrast between government-subsidized housing and the local market. The Fair Market Rent (FMR) set by HUD for the fiscal year 2024 is $3,040. In stark comparison, the local market rent, as measured by the Zillow Observed Rent Index (ZORI), averages around $18,000. This significant gap suggests that properties in this ZIP code are unlikely to be suitable for hands-off Section 8 operators, who typically rely on the voucher program to cover the majority of rental costs. Instead, this market favors hands-on value-add buyers who can leverage the substantial difference between the FMR and market rents to generate higher returns.
In summary, ZIP 06870 represents a premium segment of the real estate market in Greenwich, CT. Its high median income and home values make it an attractive location for investors willing to engage actively in property management and renovation. While the FMR is significantly lower than the market rent, this ZIP code is best suited for those looking to capitalize on the lucrative local rental market through strategic investments and management practices.
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.