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 | $1,230 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $355,102 | 0.44% | F |
| 3BR | $2,150 | $380,521 | 0.57% | F |
| 4BR | $2,480 | $462,847 | 0.54% | F |
| 5BR | $2,877 | $507,128 | 0.57% | F |
U.S. Census Bureau data (2024)
Magnolia, DE's ZIP code 19962 is characterized by a relatively small but affluent community of 13,770 residents. Only 10.5% of the population are renters, indicating a predominantly owner-occupied area. The median household income in this ZIP code stands at a robust $104,260, which is significantly higher than the national average. This affluence is further reflected in the median home value of $418,267, suggesting a neighborhood where homes are both expensive and well-maintained.
The economic landscape for rental properties in ZIP 19962 is defined by the Federal Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for a two-bedroom apartment is set at $1,310. In contrast, the Census Bureau’s American Community Survey (ACS) reports an average market rent of $1,467 for similar units. This indicates that the rental market slightly exceeds the government's benchmark for affordable housing, potentially making it less attractive for low-income tenants who rely on Section 8 vouchers.
Given these figures, ZIP 19962 may not be the ideal location for a hands-off Section 8 voucher operator. The higher median income and home values suggest a preference among residents for quality and amenities, which could mean that landlords would need to invest in maintaining high standards to attract tenants. On the other hand, a hands-on value-add buyer could find opportunities here. By improving property conditions and offering additional services, such as landscaping or maintenance packages, a landlord can cater to the preferences of the local population while still remaining competitive in the rental market. The difference between the FMR and market rent also provides a margin for landlords to manage their properties effectively without relying solely on voucher payments.
To conclude, while the neighborhood offers a stable and affluent environment, the dynamics of the rental market necessitate a proactive approach from investors. Landlords should consider enhancing their properties to meet the expectations of the local demographic, thereby creating a desirable living space that balances the needs of both tenants and owners.
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.