Location: Sussex County, DE | Metro: Salisbury, MD HUD Metro FMR Area
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 | $1,220 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,080 | $296,493 | 0.7% | D |
U.S. Census Bureau data (2024)
ZIP 21874, located in Sussex County, DE metro, is best suited as a diversifier within a Section 8 portfolio strategy. The area's median income stands at $78,393, providing a stable economic foundation for tenants who rely on government subsidies to meet their housing needs.
The renter share in ZIP 21874 is 17.6%, indicating a significant portion of the population that prefers or requires rental accommodation. This statistic supports the viability of maintaining a diverse mix of properties that cater to both homeowners and renters, enhancing overall portfolio resilience.
While the Fair Market Rent (FMR) for ZIP 21874 in fiscal year 2024 is set at $1,430, the market rent currently averages $1,460. This slight discrepancy of $30 between the FMR and market rent suggests that landlords participating in the Section 8 program will see minimal impact on their cash flow, as the difference is negligible when compared to the broader market trends.
The median home value in ZIP 21874 is $291,198. Although this figure does not directly correlate with rental property values, it provides insight into the local real estate market health. Given the absence of specific appreciation indicators such as price-cut share and days on market (DOM), it is prudent to focus on the stability and diversity that ZIP 21874 offers.
In conclusion, ZIP 21874 serves as an effective diversifier within a Section 8 portfolio due to its balanced median income, significant renter share, and stable rental market conditions. Landlords and small-portfolio investors should consider this ZIP code for its potential to provide consistent cash flow without the volatility associated with appreciation plays.
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.