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 | $1,140 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $256,600 | 0.57% | F |
| 3BR | $1,900 | $341,947 | 0.56% | F |
| 4BR | $2,250 | $430,302 | 0.52% | F |
| 5BR | $2,610 | $485,054 | 0.54% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 19963, located in Milford, DE, within Sussex County, can be broken down into clear financial terms. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1250. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this area.
Local market rents, according to the Census ACS, hover around $1254 for a similar two-bedroom unit. This slight discrepancy between the SAFMR and the actual market rent suggests that landlords in this ZIP code are already pricing their units close to the maximum allowable under Section 8 guidelines.
A voucher payment consists of two parts: the subsidy paid directly to the landlord by the housing authority and the tenant's contribution towards rent. For a two-bedroom unit, the tenant is typically expected to pay 30% of their adjusted income. If we assume an average adjusted income of $1500 per month, the tenant would contribute approximately $450 towards rent. The housing authority would then cover the remaining $800, bringing the total reimbursement to the landlord up to $1250.
Utility allowances are also part of the calculation but are generally less significant. These allowances vary by location and size of the unit but do not typically exceed $200 per month for a two-bedroom apartment. Therefore, if a landlord includes utilities in the rent, they should factor in this additional allowance when setting the overall rent price.
In ZIP 19963, given the SAFMR of $1250 and the local market rent of $1254, there is a very narrow margin where landlords might experience a reimbursement gap. In this case, the gap would be $4 per unit, assuming the landlord charges exactly $1254. However, if the landlord sets the rent at $1250, they will receive the full amount from the voucher program without any gap.
To summarize, landlords in ZIP 19963 should expect a voucher reimbursement of $1250 for a two-bedroom unit, which closely aligns with the local market rent. The tenant’s contribution of about $450, plus any utility allowances, completes the payment structure. Given these figures, landlords will either have a minimal surplus or a small reimbursement gap depending on how they set their rental rates.
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.