Real Estate Investing in Clayton, Delaware (19938)
Should you buy in 19938 (Clayton, DE)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Clayton, DE (19938)?
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Market Analysis: 19938 Clayton
The 19938 ZIP in Clayton, DE is a local-operator market. Outside capital chasing a $426K entry has to pair deep knowledge with the discount.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 19938 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
The gap between 19938 and stronger Clayton ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
The 19938 ZIP's population of 9,867 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reflects the need for careful underwriting.
Strategically, 19938 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Clayton:
Property Strategy for 19938
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $270,392 | $1,850 | 4.9% | +8.1% | $135,196 |
| 3BR | $378,352 | $2,540 | 4.8% | +8.1% | $126,117 |
| 4BR | $462,715 | $2,840 | 4.4% | +7.5% | $115,679 |
Market Trends
Home Value History (with trend line)
📊 How Does 19938 Compare?
| Metric | 19938 | Clayton | Dover, DE | Delaware |
|---|---|---|---|---|
| Home Value | $426,106 | $426,106 | N/A | $397,840 |
| 5-Year CAGR | 6.3% | 6.3% | N/A | 6.7% |
| Avg Rent | $1,665 | $1,665 | N/A | - |
| Cap Rate | 3.1% | 3.1% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 19938 (Clayton, DE). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $426,106 |
| Monthly Rent | $1,665 |
| Price-to-Rent | 21.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.7% |
| Cap Rate | 3.1% |
| 5-Year IRR | 9.3% |
📈 Home Appreciation
| 1-Year | +4.6% ▲ |
| 3-Year CAGR | +4.2% ▲ |
| 5-Year CAGR | +6.3% ▲ |
| 10-Year CAGR | +6.2% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.5%) exceeds the estimated cap rate (3.1%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 19938
Population: 9,867
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 19938
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 4,203 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the rental occupancy rate in Clayton, DE?
Clayton, DE carries elevated vacancy risk. Expect predictable absorption at market rents of $1,665/mo.
What do rentals go for in Clayton, DE?
Rent in Clayton, DE is around $1,665/mo. The resulting rent-to-value relationship with $426K pricing is reasonable for most investor models.
Is Clayton, DE landlord-friendly?
Rental owners in Clayton, DE deal with a balanced legal framework. Most standard eviction processes run on reasonable timelines.
How strong is the working-renter base in Clayton, DE?
Clayton, DE draws a even-keeled base of working renters. Demand at the $1,665/mo rent level is reasonable for standard single-family and small multi rentals.
What real estate strategy is ideal for Clayton, DE?
Investors usually favor careful cash-flow rentals with hands-on management in Clayton, DE. With home values at $426K and rents near $1,665/mo, other strategies can work but produce predictable rather than outsized returns.
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