Location: Sussex County, 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 | $1,210 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,580 | $286,753 | 0.55% | F |
| 3BR | $2,000 | $370,248 | 0.54% | F |
| 4BR | $2,380 | $471,102 | 0.51% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 19950 in Sussex County, Delaware, reveals several key points regarding its viability for Section 8 real-estate investment.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1320, which is slightly higher than the average market rent of $1305 reported by the Census Bureau's American Community Survey (ACS). This indicates that landlords participating in the Section 8 program can expect to receive rents that are marginally above the market rate, thus making the rent math favorable.
Secondly, we examine the affordability of acquiring properties in this area. The median home value stands at $365,278. However, due to the lack of specific data on days on market (DOM) and the percentage of homes needing price cuts, it's challenging to provide a definitive assessment on how competitive the acquisition process might be. Nonetheless, the median home value suggests that purchasing properties here could be considered moderate in terms of cost, depending on the investor's budget and strategy.
Lastly, the presence of tenant demand is critical for any rental property investment. With a total population of 7,918, 24.6% of residents are renters. This translates to approximately 1,945 renters in the area, indicating a steady demand for rental housing. The relatively high renter share suggests that there is a sufficient number of potential tenants interested in renting properties, especially those covered under the Section 8 program.
In summary, ZIP 19950 presents a positive outlook for Section 8 real-estate investments. The rent math works in favor of landlords, with FMR slightly exceeding market rates. While the acquisition costs are moderate, the specific dynamics of the local real estate market remain unclear without detailed DOM and price-cut data. Tenant demand is robust, with a significant portion of the population actively seeking rental housing. These factors collectively suggest that this area could be a viable option for landlords and small-portfolio investors looking to enter the Section 8 housing market.
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.