Location: Philadelphia-Camden-Wilmington, PA | 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 | $1,570 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,720 |
| 4 Bedrooms | $3,130 |
| 5 Bedrooms | $3,631 |
| 6 Bedrooms | $4,067 |
| 7 Bedrooms | $4,392 |
| 8 Bedrooms | $4,612 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,000 | $274,850 | 0.73% | D |
| 3BR | $2,720 | $390,376 | 0.7% | D |
| 4BR | $3,130 | $475,861 | 0.66% | D |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP code 19938 in Clayton, DE, under the Section 8 program are significant. Tenant turnover is a critical issue, with the market rent at $1,582 compared to the Fair Market Rent (FMR) set at $1,580 for FY 2024. This narrow margin suggests that tenants may be more likely to leave when their vouchers expire, seeking higher FMR rents elsewhere. Additionally, vacancy exposure is a concern due to the lack of available data on days on market (DOM), indicating unpredictable periods of vacancy which can impact cash flow.
Deferred maintenance poses another risk, especially considering the typical home value in the area stands at $422,792 while the median household income is only $99,596. This disparity implies that homeowners might struggle to keep up with necessary repairs and improvements, potentially leading to substandard living conditions and increased maintenance costs for landlords.
However, these risks are tempered by the high concentration of renters in Clayton, DE, where 8.2% of the population are renters. High renter density generally correlates with greater demand for rental properties, including those accepting Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate some of the financial uncertainties associated with the program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.