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 | $1,160 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $231,495 | 0.64% | D |
| 3BR | $2,030 | $354,013 | 0.57% | F |
| 4BR | $2,340 | $444,427 | 0.53% | F |
U.S. Census Bureau data (2024)
1350 is the Fair Market Rent (FMR) for ZIP code 19946, Frederica, DE, for fiscal year 2024. This means that landlords can charge up to $1350 per month for a two-bedroom apartment under the Section 8 program. However, the local market rent, as indicated by ZORI, stands at $2,500, suggesting that properties could potentially command much higher rents outside of the subsidized housing program. The median home value in this area is $369,129, reflecting a stable residential market where property values have likely seen consistent growth over recent years. Renter share in ZIP 19946 is 12.2%, indicating a relatively low percentage of the population relies on rental housing, which could mean competition among renters is high, pushing market rents upwards. Median income in the area is $80,459, providing insight into the financial capabilities of potential tenants and their ability to afford higher rents. Despite the strong market conditions, the day DOM (Days on Market) is listed as N/A, which might imply either very quick turnover or that this metric isn't commonly tracked in the region. The price-cut share, at 0.3%, suggests that few listings are being reduced in price, a sign of a robust real estate market where sellers typically find buyers without needing to lower their asking prices. Given these factors, it's clear that while the demand for rentals exists, the disparity between the Section 8 FMR and the actual market rent presents a significant challenge for landlords looking to maximize their returns. For small-portfolio investors, the decision to participate in Section 8 should be carefully weighed against the potential for higher yields through market-rate rentals.
Verdict: Participation in Section 8 is viable but less attractive due to the significant gap between FMR and market rents.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.