Location: Dover, DE | Metro: Dover, DE MSA
| 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 |
U.S. Census Bureau data (2024)
In evaluating the investment risk for Section 8 properties in ZIP code 19955, several factors must be considered to determine the potential challenges and rewards for landlords and small-portfolio investors.
Tenant turnover is a significant concern. The market rent stands at $1,452, which is notably lower than the Fair Market Rent (FMR) of $1,580 for fiscal year 2024. This disparity suggests that landlords may face higher turnover rates as tenants seek more affordable housing options outside the Section 8 program. High turnover can lead to increased vacancy periods and maintenance costs, impacting profitability.
Vacancy exposure is another critical issue. The days on market (DOM) figure is currently unavailable, which makes it difficult to predict how long a property might remain vacant between tenancies. However, the gap between the market rent and the FMR indicates that there could be periods where finding suitable tenants becomes challenging, especially if the local economy experiences downturns or if rental demand shifts towards non-subsidized housing.
The deferred-maintenance exposure is also noteworthy. With a median income of $44,634 and an unspecified typical home value, landlords must be prepared for the possibility that tenants may not prioritize maintenance, leading to higher repair and renovation expenses over time. This risk is compounded by the lower market rent compared to the FMR, potentially reducing the funds available for such upkeep.
Despite these risks, the high renter share of 24.5% in ZIP 19955 points towards a robust demand for rental properties, including those eligible for Section 8 vouchers. A larger pool of renters generally translates into greater competition for subsidized housing units, which can help mitigate the risk of prolonged vacancies.
To summarize, while there are notable risks associated with Section 8 investments in ZIP 19955, particularly concerning tenant turnover and maintenance, the high renter density provides a buffer against vacancy exposure. Given these factors, the overall risk for a first-time Section 8 landlord in this area is moderate.
Data Sources: FMR data from HUD (2027). 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.