How Much House Can I Afford in Delaware?

Median Home Price

$330,000

Median Household Income

$75,000

Avg Property Tax Rate

0.57%

Avg Insurance/mo

$92

Delaware is a surprisingly affordable mid-Atlantic option, with a low property tax rate (0.57%), no sales tax, and a median home price around $330,000. New Castle County communities near Wilmington offer prices from $250,000 in starter-home areas to $500,000+ in suburbs like Hockessin and North Wilmington.

Sussex County in southern Delaware is a different market. Beach communities of Rehoboth Beach, Lewes, and Bethany Beach command prices of $450,000–$1M+, driven by vacation home demand and retiree migration — making it one of the fastest-growing Mid-Atlantic housing markets.

Homeowners insurance is relatively affordable at around $1,100/year ($92/month), thanks to Delaware's limited hurricane exposure. Coastal Sussex County properties near the ocean may pay more, particularly those requiring separate flood insurance.

Delaware charges a real estate transfer tax of 4% of sale price, split 50/50 between buyer and seller — meaning buyers pay 2% at closing. On a $330,000 home, that's $6,600 for the buyer's share. First-time buyers may qualify for a reduced transfer tax under certain programs.

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Delaware has no state sales tax and a low property tax rate (0.57%), boosting overall affordability.

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Wilmington is the primary job center; Sussex County beaches draw retirees and second-home buyers.

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A 2% buyer transfer tax applies at closing (part of a 4% state + local total split 50/50).

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Coastal Sussex County (Rehoboth, Lewes) is among the fastest-growing Mid-Atlantic markets.

Income

$20K$1.0M

Monthly Debts

$0$5,000

Down Payment

$0$500K
%
050

warningPMI applies — put 20% down to eliminate it

DTI Guideline

Front 30% / Back 40%

You can afford up to

$2,500/month total payment

Constrained by front-end DTI

Budget Range

Conservative → Aggressive
$347K$369K$401K

Debt-to-Income Ratios

24.3%limit 30%

Front-end DTI (housing)

36.0%limit 40%

Back-end DTI (all debts)

Monthly Payment Breakdown

$2,500/month
Principal & Interest
$2,027
Property Tax
$175
Insurance
$92
PMI
$206

Scenario Comparison

Ways to Increase Your Budget

savings

Adding $10K to your down payment could increase your budget by $9K.

+$9K
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A 0.5% lower rate could expand your budget by $14K.

+$14K
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You're paying $206/mo in PMI. Reaching 20% down eliminates this cost.

Disclaimer: These estimates are for educational purposes only. Actual loan qualification depends on your credit score, lender guidelines, and local market conditions. Consult a licensed mortgage professional before making any financial decisions.

Frequently Asked Questions

What is the property tax rate in Delaware?expand_more
Delaware's effective property tax rate is about 0.57% annually. On a $330,000 home, expect roughly $1,881/year or $157/month in property taxes.
Does Delaware have a sales tax?expand_more
No. Delaware has no state or local sales tax, reducing the cost of appliances, furniture, and home improvements.
What is the transfer tax in Delaware?expand_more
Delaware charges a 3% state transfer tax plus 1% local tax (4% total), split 50/50 between buyer and seller. Buyers pay 2% of the sale price at closing.

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