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 | $1,300 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,710 | $525,398 | 0.33% | F |
| 3BR | $2,100 | $726,380 | 0.29% | F |
| 4BR | $2,540 | $1,084,064 | 0.23% | F |
| 5BR | $2,946 | $1,991,661 | 0.15% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 19971, which includes Rehoboth Beach, DE, is set at $1570 for fiscal year 2024. This is the payment standard used by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 housing program, meaning that if you participate in Section 8 in this area, HUD will pay up to $1570 per month for a unit to be rented under the program.
In comparison, the local average rent for similar units is $2,623, as indicated by the Zillow Rent Index (ZORI). This suggests that the FMR is significantly lower than the market rate, which could mean that your rental income under Section 8 might be less than what you would receive from a market-rate tenant. However, the FMR does not represent the total rent you can charge; it's the maximum amount HUD will pay towards the tenant's rent.
The 13.2% renter share indicates the portion of the population that relies on rental housing. In Rehoboth Beach, this means that a little over 13% of residents are looking for rental properties. While this percentage might seem low, it still represents a significant demand for affordable housing options, particularly in a resort town where housing costs can be high.
If you're considering purchasing a property to use for Section 8 rentals, the median home value in the area is approximately $834,067. This figure gives you an idea of the acquisition cost for a typical home in Rehoboth Beach. Given the high cost of entry into the market, it's important to understand the long-term financial implications of participating in the Section 8 program versus renting at market rates.
Before making a decision, verify that the property meets all the eligibility requirements for the Section 8 program, including safety, health, and structural standards. This ensures that HUD will approve the unit and that you can start receiving payments without delays.
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.