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 | $1,580 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,760 |
| 4 Bedrooms | $3,180 |
| 5 Bedrooms | $3,689 |
| 6 Bedrooms | $4,132 |
| 7 Bedrooms | $4,463 |
| 8 Bedrooms | $4,686 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,760 | $348,713 | 0.79% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 19979, located in Dover, DE MSA, reveals several key points that can guide investment decisions. The HUD Fair Market Rent (FMR) for ZIP 19979 in fiscal year 2024 is set at $1360. This figure should be compared to the market rent of $1742, as reported by the Census American Community Survey (ACS).
Voucher tenants in this area will cashflow marginally at the HUD FMR rate. Landlords who participate in the Section 8 program will need to ensure their properties are priced competitively yet remain within the HUD guidelines to attract tenants. Given the discrepancy between the HUD FMR and the market rent, it's advisable to focus on premium units that offer higher quality and amenities, which can command rents closer to the market rate while still providing a positive cashflow.
The median home value in ZIP 19979 is $345,747. To derive the rent-to-price ratio, we divide the median market rent by the median home value. This yields a ratio of approximately 0.5%, indicating that rental income represents a small portion of the overall property value. However, this metric is more indicative of the broader housing market and less directly relevant to the Section 8 program, which focuses on rental rates rather than home values.
The dynamics of days on market (DOM) and the percentage of price cuts are not applicable in this scenario, as they pertain more to the buying market than the rental market. For Section 8 investors, the primary concern is ensuring that the rent collected under the voucher program covers the expenses associated with the property, including mortgage payments, maintenance, and other costs.
The strongest angle for investors in ZIP 19979 is likely to be cashflow. While the appreciation and stability of the market are important considerations, the ability to generate consistent cashflow from rental income, even if marginally, is crucial for long-term success in the Section 8 program.
Investor Angle: Cashflow remains the most compelling reason to invest in Section 8 properties in ZIP 19979, given the current HUD FMR and market rent conditions.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.