Location: Dover, DE | Metro: Dover, DE 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 | $1,240 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $239,163 | 0.66% | D |
| 3BR | $2,160 | $313,011 | 0.69% | D |
| 4BR | $2,500 | $401,059 | 0.62% | D |
| 5BR | $2,900 | $460,638 | 0.63% | D |
U.S. Census Bureau data (2024)
Dover, DE's ZIP code 19904 is a part of a diverse urban neighborhood within the city. With a total population of 38,818, it reflects a significant portion of residents who choose to rent rather than own their homes, at 38.0%. The median household income in this area stands at $66,908, which places it above the national average, indicating a relatively stable economic environment. The median home value in ZIP 19904 is $341,229, suggesting a mix of affordable and mid-range housing options.
The rental market in 19904 is particularly interesting due to the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For the fiscal year 2024, the FMR is set at $1,350, whereas the Zillow Observed Rental Index (ZORI) indicates a market rent of $1,800. This difference highlights a potential opportunity for landlords and small-portfolio investors who can navigate the complexities of the Section 8 program while also catering to the broader rental market.
Given these economic conditions, ZIP 19904 is suitable for both hands-off voucher operators and hands-on value-add buyers. For those who prefer a less active role, the consistent income provided by the Section 8 program, coupled with the lower FMR, can offer a predictable and stable cash flow. However, for investors willing to engage more actively, there is room to enhance property values and rents to capture the higher market rate, thus increasing profitability beyond the voucher limits.
In summary, Dover's ZIP 19904 presents a balanced investment opportunity with a strong urban presence and a mix of income levels. Whether an investor chooses to rely solely on Section 8 vouchers or aims to improve properties to attract higher-paying tenants, the area offers a solid foundation for real estate investments.
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.