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 | $1,250 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $352,487 | 0.47% | F |
| 3BR | $2,020 | $470,805 | 0.43% | F |
| 4BR | $2,430 | $585,432 | 0.42% | F |
| 5BR | $2,819 | $674,846 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 19968, located in Milton, Delaware, presents an interesting scenario for both renters and landlords alike. The median income in this area stands at $87,163. When compared to the market rate rent of $1,361, as reported by the Census Bureau's American Community Survey (ACS), it becomes evident that the cost of housing represents a significant portion of a household's budget. This makes up a substantial 15.6% of the median annual income, which is calculated by multiplying the monthly rent by 12 and then dividing by the annual income.
In terms of affordability, the Federal Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1,350. This figure is nearly identical to the market rate rent, indicating that while the voucher payment standard closely aligns with market rates, it still leaves a minimal gap that could impact a household's ability to cover other expenses. For those relying on vouchers, the alignment between the FMR and market rates suggests that they will be able to find housing options that meet their financial capabilities, though they might have limited choices due to the tight match between these figures.
Milton has a relatively low percentage of renters at just 9.2% of the total population of 15,486. This low rental demand can lead to increased competition among landlords for tenants who are willing and able to pay the market rate. Given the narrow margin between the market rate and the FMR, landlords may need to consider their strategies carefully when deciding whether to accept voucher tenants or focus on those paying cash rent.
The takeaway for landlords is that while accepting voucher payments can ensure steady income, given the close alignment with market rates, it might also limit the pool of potential tenants. On the other hand, focusing on cash-paying tenants could reduce competition but requires a market understanding that is willing to pay above the voucher amount. Landlords should weigh the benefits of voucher stability against the risk of lower occupancy rates due to limited tenant options.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.