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Wilmington, DE Cap Rate: 4.25% — Rental Property Analysis

Wilmington is a higher-priced market in the Northeast with a smaller market with 71,442 residents. At a 4.25% estimated cap rate, this is a moderate market where rents of $1,860/mo lag behind home prices. With a median home price of $375,000 and population is roughly stable, Wilmington offers opportunities for investors who source deals carefully.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Moderate — source deals carefully
Based on $375,000 median price and $1,860/mo median rent
Est. Cap Rate
4.25%
1% Rule
0.50%
Fails
GRM
16.8x
Price / Income
8.0x

Market Data

Median Home Price$375,000
Median Monthly Rent$1,860
Property Tax Rate0.56%
Population71,442
Population Growth0.2% / yr
Median Household Income$46,800
Vacancy Rate5.8%
Annual Appreciation2.4%

2026 Market Update: Wilmington

Wilmington's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $375,000, the $1,860/mo rent produces only $1,327/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.

At current rates, a 20% down conventional loan ($75K at 7%) would result in approximately $-668/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.

The 16.8x gross rent multiplier and 5.8% vacancy rate position Wilmington as a balanced market. With annual appreciation at 2.4%, total returns (cash flow + equity growth) run approximately 6.6% before financing leverage.

Cap Rate Calculator — Wilmington

Pre-filled with Wilmington medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.56% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.57%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$13,405
net operating income
Gross Rent Multiplier
16.8x
High (>15)
1% Rule
0.50%
✗ Fails
Monthly Cash Flow
$1,117
before debt service
Annual Breakdown
Gross Rental Income$22,320
Less Vacancy−$1,295
Effective Income$21,025
Less Operating Expenses−$7,620
Net Operating Income$13,405
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Cash-on-Cash Return — Wilmington

Factor in financing to see your actual return on invested capital in Wilmington.

$
$93,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.62%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$105,000
$93,750 down + $11,250 closing
Monthly Mortgage
$1,834
on $281K loan
Monthly Cash Flow
$-755
after all expenses
Annual Cash Flow
$-9,054
before taxes
Cash Flow Breakdown
Monthly Rent$1,860
Less Expenses−$781
Less Mortgage−$1,834
Monthly Cash Flow$-755

Is Wilmington a Good Place to Invest in Rental Property?

Wilmington, DE has a population of 71,442 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $375,000 paired with median rents of $1,860/mo produces an estimated cap rate of 4.25%.

Property taxes at 0.56% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 8.0x, homes cost about 8.0 times the local median income of $46,800. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Wilmington presents moderate opportunities. Cap rates near 4.25% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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