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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,600 | $626,200 | 0.57% | F |
| 3BR | $4,320 | $1,119,839 | 0.39% | F |
| 4BR | $5,360 | $1,776,224 | 0.3% | F |
| 5BR | $6,218 | $2,482,826 | 0.25% | F |
U.S. Census Bureau data (2024)
The ZIP code 06890 in Fairfield, Connecticut, presents a nuanced balance between yield and stability that is appealing to both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $2,950, which is notably lower than the market rent of $3,119. This discrepancy suggests a moderate opportunity for rental income above the FMR, indicating a decent yield potential.
However, the median home value of $1,454,950 is significantly higher, suggesting that the area is predominantly residential with a strong preference for homeownership. Only 13.4% of residents are renters, which points to a relatively low demand for rentals. This characteristic makes the market less stable for rental investments, as there is a smaller pool of potential tenants.
The average income of $218,841 provides insight into the financial capability of the residents, but it does not directly correlate to rental stability since the majority of residents own their homes. A high Day on Market (DOM) figure would typically indicate instability, but the DOM data is not available here. Nonetheless, the low percentage of renters implies that finding consistent tenants could be challenging, affecting the overall stability of rental investments.
Given these factors, ZIP 06890 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The potential for slightly higher-than-FMR rents supports cash flow, but the limited rental market and high home values suggest that rapid appreciation and flipping opportunities are unlikely. For investors, focusing on long-term rentals with competitive pricing strategies will likely yield the best results in this ZIP code.
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.