Location: Dorchester County, MD | 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 | $1,040 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $220,724 | 0.62% | D |
| 3BR | $1,690 | $312,675 | 0.54% | F |
| 4BR | $2,030 | $366,536 | 0.55% | F |
| 5BR | $2,355 | $439,252 | 0.54% | F |
U.S. Census Bureau data (2024)
ZIP code 19973, located in Seaford, DE, and part of the Dorchester County, MD metro area, fits well into a Section 8 portfolio strategy as a cash-flow anchor. The Federal Market Rent (FMR) for FY 2024 is set at $1,150, which exceeds the market rent of $1,135. This $15 spread ensures that landlords can secure steady rental income that is slightly above the local average, providing a reliable cash flow.
The median home value in this ZIP is $306,865. While this figure is relatively low compared to other areas, it stabilizes the investment by ensuring that property values remain predictable and less volatile. This stability is crucial for landlords who aim to maintain consistent cash flows without the risk of significant fluctuations in rental rates or property values.
Moreover, the 0.2% price-cut share indicates that very few listings require substantial discounts to attract tenants, suggesting strong demand for rental properties at or near the listed prices. Although the days on market (DOM) is not applicable here, the low price-cut share supports the notion that properties in this ZIP are likely to be occupied quickly, minimizing vacancy periods and maximizing cash flow.
While the ZIP has a 27.7% renter share and a median income of $64,387, these factors do not significantly contribute to making it an appreciation play or a diversifier. Instead, they support its role as a cash-flow anchor. The high demand for rental properties and the slight premium offered by the FMR over the market rent make it a stable and profitable addition to a landlord's portfolio.
In conclusion, ZIP 19973 serves best as a cash-flow anchor within a Section 8 portfolio strategy due to the positive spread between the FMR and market rent, along with the low volatility indicated by the median home value and the strong rental demand evidenced by the minimal price-cut share.
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.