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 | $1,450 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,870 | $385,035 | 0.49% | F |
| 3BR | $2,230 | $407,533 | 0.55% | F |
| 4BR | $2,460 | $539,350 | 0.46% | F |
| 5BR | $2,854 | $632,015 | 0.45% | F |
U.S. Census Bureau data (2024)
The dynamics in ZIP code 19734, which encompasses Townsend, DE, reveal a market in flux. The Fair Market Rent (FMR) for the area is set at $1940 for fiscal year 2024, while the actual market rent, as reported by the Census American Community Survey (ACS), stands at $1,324. This discrepancy suggests that the rental market may be undervalued relative to what the government considers fair, potentially indicating a competitive rental environment where landlords must offer attractive rates to attract tenants.
The low price-cut share of 0.2% signals that property owners are generally not lowering their asking prices, which can occur when there's strong demand or when sellers believe the market will improve. However, the median home value of $486,057 provides context on the overall cost of homeownership, suggesting that while homes may not be discounted, they are still valued highly. The fact that the Days on Market (DOM) is listed as N/A could imply that sales are brisk enough that homes aren't lingering on the market, but it also might indicate a lack of recent data, making it difficult to assess the speed of transactions accurately.
The 9.1% renter share in Townsend, DE, is relatively low compared to national averages, indicating that a majority of residents own their homes. This characteristic points to a community with a strong preference for homeownership, which can reduce immediate pressure on the rental market. However, it also implies that any shift towards renting, whether due to economic changes or other factors, could significantly impact the rental dynamics, potentially increasing demand and putting upward pressure on rents and occupancy rates.
In summary, Townsend, DE, presents a rental market that is currently underpriced relative to FMR, with a low rate of price cuts and a high median home value. The low renter share suggests a stable homeownership base, but also indicates that the rental market is sensitive to changes in housing preferences. Landlords and small-portfolio investors should monitor these factors closely to understand how the market might evolve, particularly in response to broader economic trends or shifts in local demographics.
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.