Location: Sussex County, DE | Metro: Sussex County, DE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,190 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,330 |
| 5 Bedrooms | $2,703 |
| 6 Bedrooms | $3,027 |
| 7 Bedrooms | $3,269 |
| 8 Bedrooms | $3,432 |
U.S. Census Bureau data (2024)
Selbyville, DE, located in ZIP code 19975, is a strategic addition to any Section 8 portfolio. Given the specific metrics, it stands out as an appreciation play. The key indicators supporting this classification include a low 0.2% price-cut share and a relatively short 51-day days on market (DOM).
The Federal Market Rent (FMR) for ZIP 19975 in fiscal year 2024 is set at $1370, which is significantly higher than the market rent of $1,037. This spread suggests that properties in this area are undervalued compared to what the government will pay through the Section 8 program. However, the primary focus here is the potential for property value appreciation rather than immediate cash flow.
The median home value in Selbyville is $530,426, indicating a stable housing market. With only a 0.2% price-cut share, it's evident that sellers in this area rarely have to lower their asking prices, suggesting strong demand and stability in home values. Additionally, a DOM of 51 days is shorter than many markets, implying that homes sell quickly once they're listed, which is another positive sign for appreciation.
While the renter share at 11.8% and median income of $88,568 might suggest some diversity benefits, these factors are secondary when considering the strong potential for appreciation. The low need for price adjustments and quick sales indicate a robust local economy and a growing interest in the real estate market of Selbyville.
In conclusion, ZIP 19975 should be viewed as an appreciation play within a Section 8 portfolio strategy. Its characteristics align well with long-term investment goals focused on capital gains, making it a valuable component for landlords and small-portfolio investors looking to build wealth over time.
Data Sources: FMR data from HUD (2027). 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.