1st Advantage MortgageA DSCR loan in Rehoboth Beach turns on rent versus payment. Citywide medians from the Census are $1,307 a month for rent, $1,486,100 for home value and $2,066 a year for real estate taxes.
Local data for Rehoboth Beach investors
Renters who pay cash rent in Rehoboth Beach have a median gross rent of $1,307 a month, , while owner-occupied homes carry a median value of $1,486,100.
| Indicator | Delaware | Rehoboth Beach | Difference |
|---|---|---|---|
| Tax as a share of home value | 0.50% | 0.14% | -72% |
| Annual property tax bill, median | $1,768 | $2,066 | +17% |
| Household income, median | $84,954 | $137,500 | +62% |
| Typical owner-occupied value | $352,000 | $1,486,100 | +322% |
| Persons per household | 2.48 | 1.69 | |
| Share of homes detached | 59.1% | 61.1% | +3% |
| Degree holders, age 25+ | 35.8% | 70.8% | +98% |
| Workers on their own account | 8.6% | 24.4% | +185% |
| Renters paying 30%+ of income | 49.6% | 41.4% | -16% |
| Units sitting vacant | 13.4% | 74.3% | +455% |
| Typical construction year | 1987 | 1975 | |
| Households that rent | 27.0% | 19.2% | -29% |
| Residents (Census estimate) | 1,021,191 | 1,370 |
Only 19.2% of occupied homes in Rehoboth Beach are rented, well below the Delaware median of 27%, so the rental pool is smaller and a vacant unit may take more marketing effort. The median household brings in $137,500 (well above the Delaware median of $84,954), with 41% of renters paying 30 percent or more of income toward rent.
Rehoboth Beach is a small place, and Census estimates for small populations carry wide margins of error, so we leave out rent-derived ratios here and rely on local quotes and comparables.
Homes, buildings and vacancies in Rehoboth Beach
Only 61% of units in Rehoboth Beach are detached houses. The rest is townhomes, duplexes and apartments, with two to four unit buildings at 8% of the total. A median build year of 1975 puts most of the stock in its second round of big repairs, and an inspector will show what remains.
Roughly 74% of Rehoboth Beach's homes are vacant according to the survey. About 70% of the housing units are classed as seasonal, recreational or occasional use, which is the footprint of a visitor economy and the reason nightly-rental rules deserve a close read.
Underwriting angles in Rehoboth Beach
With a 1975 median build year, the question for each property is when the roof and HVAC were last replaced. An owner-heavy market (81% owner-occupied) means many tenants are renting by choice rather than necessity, so condition and schools matter to them.
Taxes and risk in Rehoboth Beach
Real estate taxes are a line the rent has to cover. The median owner in Rehoboth Beach pays $2,066 a year (about 17% above the Delaware median of $1,768), which is about 0.14% of the median home value. That is about 13% of a year of median rent gone to taxes before the loan is even counted.
Sussex County carries a relatively moderate overall rating in FEMA's National Risk Index, where coastal flooding (very high), winter weather (very high) and cold waves (relatively high) rank highest.
| Hazard in Sussex County, FEMA index | Level |
|---|---|
| Hurricanes exposure | Relatively High |
| Cold waves exposure | Relatively High |
| Winter weather exposure | Very High |
| Coastal flooding exposure | Very High |
| Social vulnerability score | Relatively High |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Rehoboth Beach exclusions before trusting a premium estimate.
Working the Rehoboth Beach rent math
The quick test for Rehoboth Beach: rent of $1,307 divided by a 1.25 ratio allows a total payment of $1,046, and subtracting $172 in monthly taxes leaves $873 for the loan, insurance and dues. At 1.00 the allowance is the full $1,135.
Registration, deposits and nightly stays in Rehoboth Beach
For Rehoboth Beach, treat local rental rules as an open question to close before you offer. Ask the city and Sussex County about landlord registration, inspections and short-term rental permits, and check association documents too. For Rehoboth Beach short-term hosts, one state-level point stands out. Delaware's state short-term rental lodging tax applies to rentals of 31 consecutive nights or fewer under agreements entered into on or after January 1, 2025, and platforms that act as accommodations intermediaries collect and remit it.
After move-out, the Rehoboth Beach owner has 20 days to return the deposit or account for deductions. Delaware rent regulation summary: The Residential Landlord-Tenant Code sets no limit on the amount of rent; it regulates the notice for increases.
Neighbors of Rehoboth Beach by the numbers
Set Rehoboth Beach ($1,486,100 median value) beside its neighbors: Georgetown comes in lowest at $281,400, and Lewes tops the group at $826,100.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Ocean City | 26% | $3,997 | $429,000 | 6,903 | $1,353 |
| Georgetown | 50% | $1,096 | $281,400 | 7,660 | $1,410 |
| Millsboro | 32% | $1,481 | $332,600 | 7,424 | $1,277 |
| Lewes | 13% | $2,027 | $826,100 | 3,505 | |
| Rehoboth Beach | 19% | $2,066 | $1,486,100 | 1,370 |
The renter base in Rehoboth Beach
Roughly 24.4% of employed people in Rehoboth Beach are self-employed, a base of investors and landlords for whom a rent-based loan is a practical option. The same survey shows government workers are about 16% of employment, 71% of adults hold a bachelor's degree or higher and 11% of commuters travel 45 minutes or more.
Rehoboth Beach offers air service through Philadelphia International Airport, details that affect commute times and how easily a distant investor can inspect a property.
Putting a Rehoboth Beach file together
Ready to test a Rehoboth Beach deal? Use the calculator for the ratio, then start your application or send us the scenario.
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Where these facts come from
- Rehoboth Beach overview (Wikipedia)
- Delaware landlord deposit rules, Del. Code tit. 25, § 5514(a)-(g), (i)
- State rule cited for Rehoboth Beach hosts: Delaware Division of Revenue, short-term rental FAQs
- Census ACS profile behind the Rehoboth Beach figures
- Federal hazard index, DE
We took the Rehoboth Beach data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Landlord rules for Rehoboth Beach rest on Delaware statutes and the CC BY 4.0 RedFlagLease dataset. Checked October 2026; confirm with Rehoboth Beach or the county before you rely on any rule.
Before you make an offer
On a Rehoboth Beach purchase, line up the lease, the tax estimate, the insurance quote and any association dues before the appraisal is ordered, and ask the appraiser's office what rent comparables they plan to use.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Which rent counts when I finance a Rehoboth Beach property?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the Rehoboth Beach median is $1,307.
How is the DSCR figure built for a Rehoboth Beach property?
They count in full. A 1.25 ratio on $1,307 of rent permits a payment near $1,046, and median Rehoboth Beach taxes take about $172 of it each month.
What tax bill should I expect on a Rehoboth Beach rental?
Rehoboth Beach owners report a median $2,066 in annual real estate taxes, an effective 0.14% (Delaware: 0.50%). Your own bill depends on the assessed value after purchase.
Can I use Airbnb income to qualify in Rehoboth Beach?
Possible where lender guidelines allow it, subject to Rehoboth Beach and Sussex County rules and to the building's association. Lenders usually average a year of bookings and discount the result.
When must a Rehoboth Beach landlord return a deposit?
Start with Del. Code tit. 25, § 5514(a)-(g), (i). Return window: 20 days. Talk to a Delaware attorney for a lease form that matches.
Does hazard risk affect a Rehoboth Beach DSCR loan?
Overall risk is rated relatively moderate for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
Can I close a Rehoboth Beach DSCR loan in an LLC?
No, but it is common. Entity borrowers supply articles, an operating agreement and an EIN letter, and the owners typically guarantee the loan. A Delaware attorney can advise on structure.