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 | $1,940 |
| 1 Bedroom | $2,400 |
| 2 Bedrooms | $2,780 |
| 3 Bedrooms | $3,330 |
| 4 Bedrooms | $4,140 |
| 5 Bedrooms | $4,802 |
| 6 Bedrooms | $5,378 |
| 7 Bedrooms | $5,808 |
| 8 Bedrooms | $6,098 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,400 | $277,313 | 0.87% | C |
| 2BR | $2,780 | $503,213 | 0.55% | F |
| 3BR | $3,330 | $814,223 | 0.41% | F |
| 4BR | $4,140 | $1,001,134 | 0.41% | F |
| 5BR | $4,802 | $1,312,612 | 0.37% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 06905, located in Stamford, Connecticut, is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2,910, while the market rent, as measured by Zillow's ZORI, stands at $2,536. This indicates that the FMR exceeds the market rent by $374, or approximately 14.7%. The higher FMR means that voucher tenants can pay up to $2,910, which is above the typical market rate of $2,536.
In the context of Stamford, where 37.6% of residents are renters, and the median home value is $737,355, landlords can leverage this gap to their advantage. With a median income of $136,757, many residents may find it challenging to afford market-rate rents without assistance. The Section 8 program, therefore, provides a stable source of income for landlords, ensuring that they receive a rent amount closer to the FMR rather than the lower market rate.
This scenario makes ZIP 06905 a yield play for landlords. By accepting Section 8 tenants, landlords can achieve a rental income that is higher than what the open market offers. This not only increases cash flow but also potentially enhances property values due to the influx of stable, government-backed rental payments. However, it's important to note that landlords must adhere to the program's regulations and standards, which can sometimes be stringent and require additional administrative efforts.
Despite the benefits, there are also considerations regarding the cost of housing voucher tenants. Landlords might face challenges such as longer vacancy periods due to the time-consuming nature of the voucher process and potential maintenance issues if the tenant does not maintain the property. Nonetheless, the financial upside of receiving rents at the FMR level, especially when it surpasses the market rate, makes it a viable strategy for landlords and small-portfolio investors looking to maximize their returns in the Stamford area.
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.