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 | $1,480 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,870 | $232,355 | 0.8% | C |
| 3BR | $2,580 | $338,757 | 0.76% | D |
| 4BR | $2,970 | $460,152 | 0.65% | D |
| 5BR | $3,445 | $575,102 | 0.6% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 19934 (Camden, DE) for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,490 cover the debt service on a $378,460 property?
Yes: The FMR of $1,490 can potentially cover the debt service. However, the next step is crucial.
No: Do not invest. The FMR of $1,490 is insufficient to cover the debt service on a property valued at $378,460.
It Depends: This scenario requires further analysis of the specific mortgage terms and property expenses. Generally, an FMR that does not comfortably exceed the monthly debt service is risky.
2) How does the market rent of $1,659 compare to the FMR?
Above FMR: The market rent of $1,659 is higher than the FMR of $1,490. This indicates a potential for higher returns outside of Section 8, but also suggests that the competition for Section 8 tenants may be stiffer.
At or Below FMR: If the market rent is at or below the FMR, then the property's value as a Section 8 investment is more straightforward. It means the rental income will closely match the FMR, which is essential for qualifying under the program.
3) Is there sufficient demand with 15.4% renters and unknown days on market (DOM)?
Yes: With 15.4% of residents being renters, there is a notable demand for rental properties. The unknown DOM figure could mean either high turnover or steady demand, but the percentage of renters alone suggests a viable market.
No: If the DOM is excessively long, it would indicate low demand, making it difficult to fill vacancies even with a significant portion of the population renting. However, since the DOM is not provided, this branch cannot be fully evaluated.
It Depends: The 15.4% of renters shows some demand, but without knowing the DOM, it's unclear how quickly units can be filled. A high DOM could negate the positive effect of the renter percentage.
In summary, if the FMR of $1,490 covers the debt service and the market rent of $1,659 is not significantly higher, the 15.4% of renters suggests there is enough demand. However, the lack of DOM data introduces uncertainty into the decision-making process.
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.