Location: Sussex County, DE | Metro: Sussex County, DE
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 | $1,170 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $289,586 | 0.53% | F |
| 3BR | $1,890 | $374,393 | 0.5% | F |
| 4BR | $2,280 | $451,599 | 0.5% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 19947, which encompasses Georgetown, DE, in Sussex County, hinge on understanding the balance between federal rental assistance payments and local market rents. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1260. This figure represents the maximum amount that a landlord can receive from the federal government for a Section 8 voucher holder living in a 2BR unit.
In contrast, the local market rent for a similar two-bedroom apartment is $1383 according to recent Census ACS data. This indicates that landlords might face a slight shortfall when renting to tenants with vouchers, as the federal payment does not fully cover the market rate.
To clarify how the voucher system works, let's break down the components involved in determining the total reimbursement. A tenant using a Section 8 voucher is typically responsible for paying 30% of their adjusted income towards rent. Additionally, the program includes an allowance for utilities, which varies based on the type of unit and location. In ZIP 19947, the utility allowance for a 2BR unit is around $150 per month, though this can fluctuate.
The federal government will pay the difference between the SAFMR and the tenant's portion of the rent, plus the utility allowance. Therefore, if a tenant's adjusted income is such that they contribute $400 towards the rent, the government would reimburse the landlord with $1260 minus $400, which equals $860, plus the $150 utility allowance. This brings the total reimbursement to $1010.
This means that the landlord would be responsible for making up the difference between the total reimbursement and the market rent. In this case, the landlord would need to cover the $373 gap ($1383 - $1010) to reach the market rent of $1383. However, it's important to note that landlords can negotiate the rent with the tenant, ensuring it does not exceed the SAFMR of $1260, thereby eliminating the shortfall.
For landlords and small-portfolio investors considering participation in the Section 8 program, it is crucial to understand these dynamics. While the SAFMR is set specifically for ZIP 19947, providing a localized rate, the reimbursement gap or surplus will depend on the negotiated rent and the tenant's contribution. In ZIP 19947, landlords can expect a typical reimbursement gap of about $123 per month for a 2BR unit, assuming the market rent remains at $1383 and the government reimbursement is capped at $1260.
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.