Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 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 | $1,260 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,370 | $190,168 | 0.72% | D |
| 2BR | $1,630 | $209,287 | 0.78% | D |
| 3BR | $1,940 | $266,185 | 0.73% | D |
| 4BR | $2,140 | $367,725 | 0.58% | F |
| 5BR | $2,482 | $423,447 | 0.59% | F |
U.S. Census Bureau data (2024)
ZIP code 19720 in New Castle, Delaware, functions as a historic suburban hub with a mix of older housing stock and convenient access to the broader Philadelphia-Camden-Wilmington metro area. The neighborhood is defined largely by its proximity to the Delaware River and significant industrial employment, including the operations of PBF Energy’s Delaware City Refinery just to the south. This industrial presence provides a steady base of local employment, complementing the area's role as a residential commuter town. The community features a blend of walkable historic districts and more sprawling suburban developments, offering a diverse range of housing options for investors.
From a financial perspective, the market shows a tight correlation between subsidized rents and market rates. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $1,640, which sits just below the Zillow Observed Rent Index (ZORI) of $1,683, creating a negligible gap of $43. This suggests voucher rates are highly competitive with private-pay tenants. Median home values stand at $280,696, while the specific median sale price for 2-bedroom homes is $208,393. Properties are moving at a moderate pace, with a median of 42 days on market, indicating neither a frantic buyer's market nor a stagnant environment.
With 32.4% of the population renting and a median household income of $75,403, the tenant pool is substantial and financially stable relative to national averages. While the income is sufficient for market-rate housing, the proximity to major highways like I-295 and I-95 attracts workers who may still qualify for or prefer Housing Choice Vouchers for stability. Local amenities include easy access to Battery Park and the historic downtown area, though investors should verify individual school ratings to align with family tenant demand.
The Section 8 verdict for 19720 is a hold for cash-flow but a buy for stability. The lack of a premium between FMR and market rent means investors will not achieve outsized yields simply by accepting vouchers; however, the $43 gap ensures that government payments cover nearly the full market cost. Given the moderate 42-day days on market and the area's solid employment base, this ZIP offers a defensive play where voucher reliability can mitigate vacancy risk without sacrificing rental income.
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.