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 | $1,370 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,780 |
| 5 Bedrooms | $3,225 |
| 6 Bedrooms | $3,612 |
| 7 Bedrooms | $3,901 |
| 8 Bedrooms | $4,096 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,370 | $371,788 | 0.64% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 19964 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Here's a direct analysis based on the available data.
Will FMR $1560 (zip FY 2024) cover the mortgage on a $377,276 home?
The Fair Market Rent (FMR) for ZIP 19964 in fiscal year 2024 is set at $1560. This figure represents the average rent that a tenant can expect to pay through the Section 8 program. To determine if this will cover the mortgage on a $377,276 home, we need to calculate the expected monthly mortgage payment. Assuming a standard 30-year fixed-rate mortgage at an interest rate of 4%, the monthly payment would be approximately $1820. Clearly, the FMR of $1560 does not fully cover this amount. However, it's important to note that the FMR is designed to reflect the average rental cost in the area, not necessarily to match the mortgage payments of every property. Investors should consider additional sources of income or subsidies to make up the difference.
Is there enough renter demand at 12.5%?
The occupancy rate for rental units in ZIP 19964 stands at 12.5%. This percentage indicates the proportion of rental units occupied by tenants. While 12.5% might seem low, it's crucial to understand that this rate is likely influenced by seasonal factors or specific local conditions. To accurately assess whether there is sufficient demand, we would need to compare this rate against historical trends and the overall rental market health. The data suggests that demand exists but may not be as robust as in other areas. Landlords should prepare for potential vacancies and consider the stability of the local economy and population trends.
Will vouchers keep pace with $1,094 market rents?
The average market rent in ZIP 19964 is $1,094. The Section 8 voucher system aims to subsidize rents up to the FMR level, which is lower at $1560 for FY 2024. Given the current market conditions, it appears that vouchers could indeed help cover the typical rent. However, the key question is whether the voucher amounts will adjust in line with any future increases in market rents. Without specific data on projected changes in voucher values, it's difficult to provide a definitive answer. Investors should monitor updates from HUD and local housing authorities regarding any adjustments to voucher amounts.
In conclusion, while the data provides insights into the financial aspects of investing in ZIP 19964 under the Section 8 program, it also highlights the need for careful planning and consideration of additional factors such as local economic conditions and potential changes in government policies.
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.