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 | $1,970 |
| 1 Bedroom | $2,440 |
| 2 Bedrooms | $2,840 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $4,210 |
| 5 Bedrooms | $4,884 |
| 6 Bedrooms | $5,470 |
| 7 Bedrooms | $5,908 |
| 8 Bedrooms | $6,203 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,840 | $593,531 | 0.48% | F |
| 3BR | $3,430 | $764,580 | 0.45% | F |
| 4BR | $4,210 | $995,115 | 0.42% | F |
| 5BR | $4,884 | $1,296,002 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 06896, located in Redding, Connecticut, within the Bridgeport-Stamford-Danbury metropolitan statistical area (MSA), presents an interesting opportunity for Section 8 investors. According to HUD's Fair Market Rent (FMR) for fiscal year 2024, the FMR is set at $3140 per month for the region. In contrast, the Census American Community Survey (ACS) reports the market rent at $2,101 per month. This indicates that voucher tenants can easily cashflow in this area, as the FMR significantly exceeds the market rent.
The median home value in ZIP 06896 is $857,821. To understand the rent-to-price ratio, we divide the market rent by the median home value, which yields approximately 0.24%. This low ratio suggests that rental properties can be highly profitable compared to the cost of purchasing homes in the area.
Regarding the days on market (DOM) and price cut percentages, these metrics are not available for this specific ZIP code. However, the strong cashflow potential derived from the significant gap between FMR and market rent implies that rental properties are likely to remain attractive options for investors, regardless of the rent-versus-buy dynamics.
The strongest angle for investors in this market is cashflow. With the FMR substantially higher than the market rent, landlords and small-portfolio investors can expect consistent positive cashflow from Section 8 tenants, making it an attractive investment opportunity in Redding, CT.
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.