2 Salem St · Naugatuck, CT 06770

$279,000

3 bd · 2.0 ba · 3,232 sqft · MultiFamily public records · 22 Days on market

Built 1873 0.25 ac lot Est $514k · 46% under

---

Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Rent growth +4.1/5.0
• Livability +3.9/5.0
• Schools +3.3/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 2 units. confirmed

Listing remarks

Opportunity awaits with this 1873-built two-family home full of character and potential, located at 2 Salem Street in Naugatuck. Featuring two units, this property is ideal for investors or owner-occupants looking to renovate and create value. With its classic antique charm and solid footprint, the home offers a fantastic canvas for updates and improvements. Conveniently situated near Naugatuck's town center, local shops, restaurants, and parks, with easy access to Route 8 for commuting. Naugatuck continues to attract buyers seeking affordability and long-term upside, making this a smart investment opportunity. Bring your vision and unlock the full potential this property has to offer. Sale

Key facts

• Two family home
• 0.25 acre lot
• Built 1873

Tags

• TWO FAMILY HOME
• CLASSIC ANTIQUE CHARM
• EASY ACCESS TO ROUTE 8
• NEAR NAUGATUCK TOWN CENTER

Property features AI

Exterior

• Utilities: Public water; Public sewer; Domestic hot water; Fuel tank located in basement
• Home design: Multi-family 2-family property
• Construction: Frame construction; Stone foundation
• Exterior features: Level lot; Wood siding; Asphalt shingle roof; Yellow exterior color

Interior

• Bedrooms: 3 bedrooms
• Bathrooms: 2 full bathrooms
• Heating & cooling: Hot water heat (oil); Ceiling fans
• Interior features: Ceiling fans; Full, unfinished basement; Finished walk-up attic
• Laundry & utility: Laundry room in basement

What this means for you Summary

Snapshot

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $279k.

Deal economics

• At list price, monthly cash flow is $1k ($17k/yr) — positive. Per door: $688/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $279k).
• Recommended offer: $275k (1.5% below list) — sets the bar for market timing.
• Cap rate 12.2% vs local median 3.4% in Naugatuck — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 77/100 on livability (#42 in CT, #2,997 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, health & safety A+; Watch: amenities F, commute D-.
• Naugatuck School District (suburban): math 32% / reading 43% proficiency, ranked #105 of 153 in CT (top 69%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Naugatuck High School (math 20% / reading 44%, grade F, #129 of 194 statewide, top 69%, 1,288 students, 52% FRL) — zoned schools average 52% FRL vs 35% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+6.2%/yr); 112 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 502 units permitted in Naugatuck Valley Planning Region in 2024 (171 in 5+ unit buildings).
• At $4,184/mo this rent would consume 52% of the median local household income ($96k/yr) (locally 788% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 6.2% rent growth), your $78k cash investment doubles in ~5 years — after that, you're playing with house money.

Negotiation context

• It's been on market 22 days — a 2% lower offer ($275k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1873 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $274,815 (1.5% below list)

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Built in 1873 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
6. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
7. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.50% ✓
• Cap rate: 12.21%
• Cash-on-cash: 21.15%
• DSCR: 1.94
• GRM: 5.6

CMA / ARV

• ARV (on-the-fly): $513,888
• Comps found: 2

Show comp detail 2 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
8 Garden St	0.48mi	4/2.0 (+1)	2,803 (-13%)	9mo	$445,000	$159	43
308 N Main St	0.37mi	4/4.0 (+1)	2,803 (-13%)	16mo	$440,000	$157	35

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 6.23% rent growth · sell at horizon

5-year hold

• IRR: 17.2%
• Equity multiple: 1.72×
• Total profit: $56,566
• Equity at exit: $41,600

10-year hold

• IRR: 28.0%
• Equity multiple: 3.87×
• Total profit: $223,970
• Equity at exit: $24,123

Cash invested: $78,120 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 27 Tenant-Leaning
• State Connecticut: 27 Tenant-Leaning · D+7
• County: — inherits STATE
• City: — inherits STATE

Strong tenant statutes; rent commissions in some towns; courts slow especially in cities.

Methodology + full state rankings →

ZIP-level market 06770

• Home prices YoY: -33.3%
• Rents YoY: 6.2%
• Active inventory: 112
• Price-to-rent: 11.1×

Monthly cashflow live

• Estimated rent: $4,184 high
• Mortgage (P&I): −$1,463
• Tax from tax record: −$349 /mo · $4,193/yr
• Insurance: −$116
• HOA: −$0
• Vacancy / Maint / Mgmt: −$879
• Net cashflow: $1,377

Break-even live

Break-even rent $2,441

Max offer price $279,000

Occupancy floor 62%

Sensitivity live

Price	-10% $1,535	-5% $1,456	+0% $1,377	+5% $1,298	+10% $1,219
Rent	-10% $1,046	-5% $1,211	+0% $1,377	+5% $1,542	+10% $1,707
Rate	-1.0pp $1,517	-0.5pp $1,448	base $1,377	+0.5pp $1,304	+1.0pp $1,231

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	3	2	$4,184
Total (2 units)			$4,184

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $69,750
• Closing costs: $8,370
• Reserves months: —
• Total cash needed: —

Rent comps 4 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
20 Myrtle Ave Naugatuck, CT	3.0	1.0	3254	$2,000	$0.61	45d	1	0.67mi
43 Hoadley St Naugatuck, CT	3.0	1.5	2816	$2,000	$0.71	24d	1	0.85mi
112 Woodbine St Unit 1st Naugatuck, CT	3.0	2.0	2530	$2,300	$0.91	45d	1	0.88mi
32 Tyler Hill Rd Naugatuck, CT	4.0	2.5	2388	$3,800	$1.59	4d	1	1.26mi

Listing history 2 events

1. 2026-04-16
   status Under Contract
2. 2026-03-25
   listed $279,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CT · Partial reset (capped growth)

• Current annual tax: $4,193 · $349/mo
• Projected year-2 tax: $5,082 · $423/mo
• Expected delta: +$889/yr (+$74/mo · 21.2%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 5/10 Major 7 d/yr ≥97°F today · 16 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $50,208
• − Mortgage interest: −$15,628
• − Property taxes: −$4,193
• − Insurance: −$1,395
• − Repairs & maintenance: −$4,017
• − Management: −$4,017
• − Depreciation: −$8,116
• Taxable income: $12,842
• Est. tax owed @ 24.0%: −$3,082
• After-tax cash flow: $13,437/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Naugatuck School District
• NCES district ID: 0902640
• Math proficiency: 32% ▼ -13.00%
• Reading proficiency: 43% ▼ -11.00%
• Median HH income: $61,060
• Composite: 33.44/100
• National rank: #5463
• State rank: #105 of 153 in CT

Livability — Naugatuck

• Score: 77/100
• State rank: #42
• US rank: #2997

Category grades

Amenities F Commute D- Cost of living B+ Crime A+ Employment A- Housing A+ Health & safety A+ User ratings D

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Naugatuck, CT
• County: New Haven County · 688,236 people
• City population: 31,823
• Metro: New Haven-Milford, CT
• Population (ZIP): 31,823
• Household income: $96,208
• Rent vs Own: 32.2% rent · 67.8% own
• Severe rent burden: 788.0

Population outlook (Naugatuck Valley County) Hauer SSP2

• By 2040: 496,846

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.59)
• Race & ethnicity: White 61% Hispanic / Latino 17% Two or more races 12% Black 11% Asian 4%
• Hispanic origin (detail): Puerto Rican 10% Dominican 1%
• Common ancestry: Romanian 7% Russian 6% Lithuanian 4%
• Foreign-born: 17% · Canada, Jamaica, China
• Languages at home: 77% English-only · Spanish 10% Other Indo-European 7% Other Asian/Pacific 2%

Political lean MEDSL · Naugatuck Valley

• 2024 margin: Lean R (+7.4) · D 45.6% · R 53.0% · Other 1.4%
• All cycles: 2024: R+7.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -108.73%
• Current HPI: 217.6177
• Rent YoY: ▲ 6.23%
• Metro: New Haven-Milford, CT
• State GDP YoY: ▲ 1.06%
• F500 in state: 38

Industry mix (Fortune 500 HQ in CT)

Industry	F500 HQs	Revenue
▸Industrial Machinery	4	$38B
▸Insurance	3	$71B
▸Financial Services	2	$25B
▸Transportation / Logistics	2	$18B
▸Healthcare	1	$247B
▸Telecommunications	1	$55B

Price history

2 events — show timeline

• 2026-04-16 Pending — Smart MLS
• 2026-03-25 Listed $279,000 Smart MLS

Property tax history

+1.7%/yr

Latest (2022): $4,193 · +0.0% YoY. Source: county tax records.