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
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.
All figures below are computed from Wilmington's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
At 0.56% effective rate on the $375,000 median price, the annual tax bill is $2,100 — that's very low (bottom 15% of US markets) (-47% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
If Wilmington continues appreciating at 2.4%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $375K | $1,860 | 4.2% |
| Year 1 | $384K | $1,916 | 4.3% |
| Year 2 | $393K | $1,973 | 4.3% |
| Year 3 | $403K | $2,032 | 4.3% |
| Year 4 | $412K | $2,093 | 4.3% |
| Year 5 | $422K | $2,156 | 4.4% |
Same median-priced Wilmington property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $375K | $1,327 | $15,925 | 4.2% |
| 20% down conventional @ 7% | $86K | $-668 | $-8,015 | -9.3% |
| 25% down DSCR @ 8.5% | $109K | $-836 | $-10,028 | -9.2% |
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $281K | $1,581 | $12,136 | 4.3% | $1,011 |
| At median | $375K | $1,860 | $13,854 | 3.7% | $1,155 |
| Above median (~125% price) | $469K | $2,139 | $15,572 | 3.3% | $1,298 |
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Wilmington's historical appreciation rate of 2.4%:
On a $75K down payment, that's a 39.5% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Automated checks against the underlying data — surface only the risks that actually apply to Wilmington, not generic boilerplate:
Pre-filled with Wilmington medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Wilmington.
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.