Understanding the relationship between weather events and highway traffic flow is important for enhancing transportation infrastructure resilience. This study investigates the effects of localized rain events on highway capacity, with a specific focus on traffic breakdowns. Analysis of connected vehicle data under varying rain conditions reveals that traffic breakdowns are most likely to occur at the boundaries of rain zones. Short, localized rain events disrupt traffic more significantly than widespread, persistent rainfall, due to a habituation effect where drivers adjust to prolonged adverse conditions. Unlike previous studies, which broadly examine the impact of rain on traffic flow, this research focuses on the distinct effects of localized rain events, providing a more nuanced understanding of precipitation-induced disruptions. The findings from this study could offer practical guidance for improving traffic management strategies, optimizing road design, and enhancing driver safety during adverse weather events.