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 | $1,480 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $366,788 | 0.53% | F |
| 3BR | $2,400 | $537,913 | 0.45% | F |
| 4BR | $2,890 | $741,150 | 0.39% | F |
| 5BR | $3,352 | $1,037,254 | 0.32% | F |
U.S. Census Bureau data (2024)
Lewes, DE, with a total population of 31,938, is a coastal town known for its blend of historical charm and modern amenities. The neighborhood in ZIP code 19958 represents a typical slice of this community, where only 16.0% of residents are renters. This indicates a predominantly owner-occupied area, suggesting a stable and possibly affluent residential environment. The median household income in the area is strong at $97,197, which supports a higher standard of living and suggests that residents have disposable income for various lifestyle choices. The median home value of $585,767 further underscores the economic status of the neighborhood, making it an attractive location for those seeking a comfortable and desirable living space.
From an investment perspective, the rent economics in ZIP 19958 present both opportunities and challenges. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1,650, while the market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $2,130. This gap between FMR and market rent highlights the potential for landlords to earn above the government-set rates, assuming they can secure tenants willing to pay market prices. However, the limited rental market, with only 16.0% of the population renting, means that landlords must be strategic in their property management and tenant selection processes to ensure steady occupancy.
The hands-off voucher operator might find this area challenging due to the relatively low percentage of renters and the competition from market-rate rentals. On the other hand, a hands-on value-add buyer could benefit from the high median income and home values by targeting properties that can be renovated or upgraded to command higher rents. This approach would require active management and a keen eye for potential improvements that could attract tenants willing to pay closer to the ZORI rate. In conclusion, ZIP 19958 offers a niche opportunity for investors who are prepared to engage actively in the local rental market, leveraging the area's strong economic indicators to create value and profitability.
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.