Lincoln is home to the best residential real estate investment market in Delaware.
The 19960 zip code in Lincoln presents the greatest opportunity for the best real estate investments among the 168 individual real estate markets in Delaware we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
5 best places to invest in Delaware
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Lincoln | 100 | 5.3 | 65.93% |
| 2 | Wilmington | 98.5 | 3.5 | 59.30% |
| 3 | Felton | 94.3 | 4.9 | 56.85% |
| 4 | Camden | 91.8 | 4.5 | 53.23% |
| 5 | Frankford | 91.8 | 5.5 | 58.90% |
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1. Lincoln
We've identified the 19960 zip code in Lincoln as Delaware's best real estate investment market. Here's why.
🔎 Key data about Lincoln
| Data point | Value | Rank in state (of 168 markets) |
|---|---|---|
| Zip code | 19960 | N/A |
| InvestScore | 100 | Highest |
| Typical property value | $329,765[1] | 15th lowest |
| Five-year appreciation | 65.93%[2] | the highest |
| Household income | $62,596[3] | 33rd highest |
| Affordability ratio | 5.3 | 30th most affordable |
| Five-year population growth | 6.1%[4] | 20th highest |
| Unemployment rate | 2.4%[5] | 4th lowest |
| Property taxes | $900[6] | 3rd lowest |
| Educational attainment | 12.8%[7] | 42nd highest |
Lincoln (zip code 19960) is the best residential real estate investment market in Delaware. It has the the highest property value appreciation among markets we evaluated, with a 65.93% appreciation of the typical property over the last five years.
Lincoln is the 30th most affordable market among the 168 Delaware markets we evaluated, with an affordability ratio of 5.3.
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2. Wilmington
The 19801 zip code in Wilmington is the runner-up spot for the best real estate investments in Delaware.
🔎 Key data about Wilmington
| Data point | Value | Rank in state (of 168 markets) |
|---|---|---|
| Zip code | 19801 | N/A |
| InvestScore | 98.5 | 2nd highest |
| Typical property value | $147,864[8] | lowest |
| Five-year appreciation | 59.30%[9] | 3rd highest |
| Household income | $42,453[10] | 42nd highest |
| Affordability ratio | 3.5 | 3rd most affordable |
| Five-year population growth | 3.0%[11] | 30th highest |
| Unemployment rate | 9.7%[12] | 42nd lowest |
| Property taxes | $1,396[13] | 20th lowest |
| Educational attainment | 24.1%[14] | 31st highest |
The 19801 zip code in Wilmington features a typical property value of $147,864, the lowest in the state.
Property values have appreciated 59.30% over the past five years, the 3rd highest increase among evaluated markets in the state. Wilmington homes have an affordability ratio of 3.5, the 3rd most affordable in the state.
3. Felton
The 19943 zip code in Felton comes in at No. 3 in our ranking of the best residential real estate investment markets in Delaware.
🔎 Key data about Felton
| Data point | Value | Rank in state (of 168 markets) |
|---|---|---|
| Zip code | 19943 | N/A |
| InvestScore | 94.3 | 3rd highest |
| Typical property value | $367,080[15] | 23rd lowest |
| Five-year appreciation | 56.85%[16] | 5th highest |
| Household income | $74,785[17] | 23rd highest |
| Affordability ratio | 4.9 | 23rd most affordable |
| Five-year population growth | 2.8%[18] | 31st highest |
| Unemployment rate | 3.6%[19] | 8th lowest |
| Property taxes | $1,162[20] | 10th lowest |
| Educational attainment | 30.7%[21] | 21st highest |
With a typical property value of $367,080, Felton's 19943 zip code features the 23rd lowest property values in the state.
Felton homes have an affordability ratio of 4.9, the 23rd most affordable among the markets we evaluated.
4. Camden
The 19934 zip code in Camden ranks No. 4 among Delaware's residential real estate investment markets.
🔎 Key data about Camden
| Data point | Value | Rank in state (of 168 markets) |
|---|---|---|
| Zip code | 19934 | N/A |
| InvestScore | 91.8 | 4th highest |
| Typical property value | $351,826[22] | 21st lowest |
| Five-year appreciation | 53.23%[23] | 8th highest |
| Household income | $77,936[24] | 8th highest |
| Affordability ratio | 4.5 | 21st most affordable |
| Five-year population growth | 7.3%[25] | 17th highest |
| Unemployment rate | 5.6%[26] | 26th lowest |
| Property taxes | $1,394[27] | 19th lowest |
| Educational attainment | 38.1%[28] | 14th highest |
Property values in Camden's 19934 zip code have seen the 8th highest increase among evaluated markets in the state, with an appreciation of 53.23% over the past five years.
Camden's affordability ratio of 4.5 makes it the 21st most affordable among the 168 markets we evaluated.
5. Frankford
The 19945 zip code in Frankford rounds out our top five residential real estate investment markets in Delaware.
🔎 Key data about Frankford
| Data point | Value | Rank in state (of 168 markets) |
|---|---|---|
| Zip code | 19945 | N/A |
| InvestScore | 91.8 | 5th highest |
| Typical property value | $462,011[29] | 33rd lowest |
| Five-year appreciation | 58.90%[30] | 4th highest |
| Household income | $83,732[31] | 4th highest |
| Affordability ratio | 5.5 | 35th most affordable |
| Five-year population growth | 36.3%[32] | 2nd highest |
| Unemployment rate | 4.3%[33] | 13rd lowest |
| Property taxes | $1,023[34] | 8th lowest |
| Educational attainment | 28.7%[35] | 24th highest |
Property values in Frankford's 19945 zip code rose 58.90% over the last five years, ranking the city 4th highest among evaluated markets in Delaware.
Frankford homes have an affordability ratio of 5.5, the 35th most affordable among the markets we evaluated.
Investing in residential real estate can be one of the best passive real estate investments in Delaware.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Delaware
To determine the best real estate investments in Delaware we evaluated 168 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Delaware.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.
🚨 Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.
