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Wilmington vs Dover for Rental Property Investing

Side-by-side comparison of Wilmington, DE and Dover, DE — cap rates, rent, prices, and investment metrics.

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Wilmington wins 3–2 across key metrics
Wilmington leads on cash flow (4.25% vs 3.88% cap rate) · Dover leads on population growth
Metric
Wilmington, DE
Dover, DE
Est. Cap Rate
4.25%
3.88%
Median Home Price
$375,000
$365,000
Median Monthly Rent
$1,860
$1,690
1% Rule
0.50%
0.46%
GRM
16.8x
18.0x
Price / Income
8.0x
7.5x
Property Tax Rate
0.56%
0.55%
Vacancy Rate
5.8%
5.8%
Population Growth
0.2% / yr
0.5% / yr
Annual Appreciation
2.4%
2.4%
Population
71,442
40,000
Median Income
$46,800
$48,600

Wilmington vs Dover: Which Is Better for Investors?

Cash flow: Wilmington has the edge with an estimated cap rate of 4.25% compared to Dover's 3.88%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $375,000 in Wilmington vs $365,000 in Dover, while rents come in at $1,860/mo and $1,690/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Dover is growing faster at 0.5% annually vs Wilmington's 0.2%. Wilmington leads on home value appreciation at 2.4% per year.

Costs & risk: Property taxes are 0.56% in Wilmington vs 0.55% in Dover. Vacancy rates of 5.8% and 5.8% are both healthy, suggesting strong tenant demand in both markets.

Entry point: Dover offers a lower entry at $365K vs Wilmington's $375K — a difference of $10K. With a 20% down payment, that's $73K vs $75K. Wilmington's higher price may be justified by better market fundamentals.

Bottom line: Wilmington edges out Dover on most key metrics. While cap rates are moderate at 4.25%, Wilmington's overall profile is stronger. Use our free calculators to model specific deals in Wilmington or Dover.

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Wilmington, DE
4.25% cap rate · $375,000 median · $1,860/mo
Full analysis →
Dover, DE
3.88% cap rate · $365,000 median · $1,690/mo
Full analysis →

Frequently Asked Questions

Is Wilmington or Dover better for rental investing?
Wilmington wins 3–2 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Wilmington's 4.25% cap rate and $375K median price edge out Dover's 3.88% at $365K.
What is the cap rate difference between Wilmington and Dover?
Wilmington has a 4.25% cap rate vs Dover's 3.88% — a difference of 0.36 percentage points. This is a relatively small difference — other factors like growth, taxes, and local market conditions may matter more. For context, the national average is 3.81%.
Which city has lower property taxes?
Dover has lower property taxes at 0.55% vs 0.56%. On a $370K property, that's a difference of approximately $93/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Dover is growing at 0.5% annually vs Wilmington's 0.2%. Both cities have slow growth — focus on the strongest neighborhoods. Dover's appreciation rate of 2.4% also leads on home value growth.

Explore More

All Delaware Markets →4% – 5% Cap Rate Cities →3% – 4% Cap Rate Cities →Best Northeast Markets →Best Cities Over $350K →
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