Delaware Military Retirement: Best Cities, Housing Costs & Quality of Life
Where to retire in Delaware as a veteran: best cities ranked by benefits, housing costs, veteran population, and quality of life for 2025.
Delaware Military Retirement: Best Cities, Housing Costs & Quality of Life
Delaware is America's second-smallest state—you can drive from its northern border to its southern beaches in 90 minutes. But packed into those 96 miles are three distinctly different regions: the Philadelphia-influenced north, the state capital center, and the beach resort south.
For veterans, Delaware offers an unusual proposition: zero sales tax, some of the nation's lowest property tax rates, full property tax exemption for 100% disabled veterans, strategic Mid-Atlantic location, and beach access—all without the crushing housing costs of neighboring New Jersey or Maryland's urban areas.
So where should you actually live in Delaware? This isn't a Chamber of Commerce promotional piece. This is a realistic assessment of which Delaware cities make sense for veterans, and which ones will cost you more than the benefits are worth.
Bottom Line Up Front
Most affordable for veterans: Dover, Middletown, Smyrna, Georgetown Best military community: Dover (Dover AFB area) Best VA healthcare access: Wilmington, Newark (direct access to VA Medical Center) Best job opportunities: Wilmington (finance), Dover (state government/Dover AFB), commute to Philadelphia Best overall value: Dover, Middletown Best beach retirement: Lewes (affordable beach option)
Reality check: Delaware has only 3 counties and limited geographic diversity. Your realistic choices are: northern Delaware (Wilmington/Newark area, expensive but near Philadelphia jobs), central Delaware (Dover area, affordable and military-friendly), or southern Delaware (beach towns, mixed costs).
Median home price range: $262,000 (Dover) to $1,300,000+ (Rehoboth Beach) State median: ~$300,000-$350,000
Delaware's advantage: Even "expensive" Delaware costs less than comparable areas in New Jersey, Maryland, or Pennsylvania—and you pay zero sales tax and minimal property taxes.
The Delaware Veteran Profile
Before ranking cities, understand Delaware's veteran landscape.
Total veterans: ~61,454 (7.5% of population) Veteran-friendly ranking: Delaware consistently ranks in top 20 states for veterans Average veteran age: 60+ (older veteran population, many retirees)
Why veterans choose Delaware:
- Strategic location (DC, Baltimore, Philadelphia, NYC all accessible)
- Zero sales tax (save thousands annually)
- Low property taxes (0.43-0.55% average vs. 2%+ in NJ)
- Beach access without Florida humidity
- Small state (short commutes, everything accessible)
- No vehicle property tax
Why some veterans leave Delaware:
- Small state limits options (only 3 counties)
- Limited defense contractor presence (must commute to MD/PA/DC)
- Higher housing costs than Southern states
- Cold winters (not Sun Belt)
- Limited military installations (only Dover AFB)
Top Cities/Areas for Veterans in Delaware
1. Dover - "The Capital City" & Dover Air Force Base Area
Overall Grade: A-
Why it ranks #1: State capital, Dover Air Force Base, affordable housing, VA clinic, central location, state hiring preference advantage.
Veteran Population
- Kent County veterans: ~15,000-18,000
- Military connection: Dover Air Force Base (largest employer in Kent County)
- Active duty: ~4,000 at Dover AFB
- Strong military community: Dover AFB influences entire area; businesses offer military discounts
Dover has the strongest military culture in Delaware. Between active-duty personnel, Guard/Reserve, retirees, and civilian employees, Dover AFB touches nearly every family in Kent County.
Housing Market
- Median home price: $262,000-$335,000 (varies by source and time of year)
- Year-over-year trend: Relatively stable, slight appreciation
- Property tax: ~$1,200/year (0.40% average Kent County rate)
- Property tax with 100% exemption: $0 (saves $1,200/year)
- Property tax rate: 0.40% (lowest in Delaware)
Cost of Living
- Overall index: 96-99 (4-5% below national average)
- Housing: 15% cheaper than Delaware state average
- Groceries: Near national average
- Utilities: Slightly below national average
- Transportation: Near national average
Dover is one of the only places in Delaware where you can live below the national cost of living average.
Employment Opportunities
Dover Air Force Base (civilian jobs):
- ~3,500 civilian employees
- Aircraft maintenance, logistics, mortuary affairs, administration
- Federal pay scales + veterans' preference
- Job security, excellent benefits
- Apply via USAJOBS.gov
Delaware State Government:
- Dover is state capital; concentration of state agencies
- Veterans' preference (5-10 points on hiring)
- Delaware employs ~14,000 state workers
- Major agencies: DelDOT, Corrections, DMV, Health, Education
Other major employers:
- Bayhealth Medical Center (hospital, ~2,000 employees)
- Delaware State University (~500 employees)
- Kraft Heinz (manufacturing)
- Procter & Gamble (manufacturing)
- Amazon distribution (Middletown, 15 minutes north)
Average salaries:
- Federal civilian (Dover AFB): $55,000-$85,000
- State government: $40,000-$70,000
- Healthcare: $45,000-$90,000
- Manufacturing: $40,000-$65,000
Why it matters: Dover offers stable government/military employment with veterans' hiring advantages. Unlike Wilmington (where you compete in finance sector), Dover's primary employers actively seek veterans.
VA Healthcare Access
- Kent County VA Clinic: 655 South Bay Road, Suite 3C, Dover, DE 19901
- Phone: (800) 461-8262, ext. 2400
- Services: Primary care, mental health, lab, pharmacy, telehealth
- Opened: March 2021 (brand new facility)
- Distance to Wilmington VA Medical Center: 45 miles (1 hour)
For specialty care: Wilmington VA Medical Center accessible within 1 hour
Quality of Life
- Climate: Four seasons—hot, humid summers (85-95°F), mild winters (30-45°F), occasional snow
- Outdoor recreation: Killens Pond State Park, Bombay Hook National Wildlife Refuge, 30 minutes to beaches
- Culture: Dover International Speedway (NASCAR), Air Mobility Command Museum, Firefly Music Festival, historic downtown
- Education: Dover schools moderate quality; Capital School District improving; private school options
- Traffic: Minimal compared to Wilmington or major metros
- Crime: Moderate; some higher-crime areas in Dover proper; surrounding towns (Smyrna, Camden) very safe
- Airport: Philadelphia International (90 minutes), BWI (90 minutes)
Military Community Strength
- Veterans Day: Major celebrations at Dover AFB
- Organizations: Active VFW, American Legion posts
- Military discounts: Ubiquitous due to Dover AFB
- Veteran unemployment: Below state average (Dover AFB hiring)
Housing Options
- Dover proper: $240,000-$320,000
- Camden (Dover suburb): $280,000-$350,000 (excellent schools, safe, family-friendly)
- Smyrna (15 min north): $300,000-$380,000 (growing fast, close to Amazon/Middletown)
- Frederica (10 min south): $220,000-$280,000 (rural, affordable)
Pros:
- Most affordable major Delaware city
- Strongest military community (Dover AFB)
- State capital = state government jobs + veterans' preference
- VA clinic on-site (no need to drive to Wilmington for routine care)
- Low property taxes (0.40%, lowest in Delaware)
- Central location (45 min to beaches, 90 min to Philadelphia/Baltimore)
- Cost of living below national average (rare for Delaware)
- Zero sales tax (standard Delaware benefit)
Cons:
- Summer heat and humidity (coastal but not beachfront)
- Some high-crime areas in Dover proper (research neighborhoods)
- Limited defense contractor jobs (must commute to MD/DC)
- Fewer cultural amenities than Wilmington
- Schools variable quality (some good, some struggling)
- Not as trendy or cosmopolitan as Wilmington or beach towns
Bottom line: Dover offers the best value proposition for veterans in Delaware. You get affordable housing, military culture, federal/state employment with veterans' preference, VA clinic access, and Kent County's rock-bottom property tax rates. If you're transitioning from Dover AFB or want small-city living with military community, Dover delivers.
2. Middletown - "Delaware's Fastest Growing City"
Overall Grade: B+
Why it ranks #2: Explosive growth, new housing, proximity to Dover AFB and Wilmington, Amazon employment, safe suburbs, excellent schools.
Housing Market
- Median home price: $407,000-$520,000 (varies by development and data source)
- Trend: Rapid appreciation due to growth
- New construction: Extensive; dozens of new developments
- Property tax: ~$2,040-$2,600/year (0.50% Appoquinimink School District rate)
- Property tax with 100% exemption: $0
Cost of Living
- Overall index: 97 (3% below national average)
- Housing: Higher than Dover, but still reasonable by Mid-Atlantic standards
- New development: Means modern homes, updated infrastructure
Employment Opportunities
Amazon Distribution Centers:
- Multiple facilities in/near Middletown
- Warehouse operations, logistics management, IT
- Starting wages: $18-$22/hour
- Advancement opportunities to management
- Veteran hiring initiatives
Commuting:
- Dover AFB: 15 miles south (20 minutes)
- Wilmington: 25 miles north (30 minutes)
- Philadelphia: 55 miles (60-75 minutes)
- Newark (University of Delaware): 15 miles (20 minutes)
Why it matters: Middletown's location is its superpower. Live here and access Dover AFB, Wilmington finance jobs, Newark, or even commute to Philadelphia. Plus Amazon provides local employment.
Quality of Life
- Schools: Appoquinimink School District—best in Delaware (top test scores, excellent ratings)
- Crime: Very low (new suburban development)
- Amenities: Shopping, restaurants rapidly expanding
- Recreation: Near Lums Pond State Park, 30 min to beaches
- Family-friendly: Young families, safe neighborhoods
Pros:
- Best schools in Delaware (Appoquinimink School District)
- Strategic location (access to Dover AFB, Wilmington, Philadelphia)
- Amazon employment (no college degree needed, $18-$22/hour starting)
- New construction (modern homes, energy-efficient)
- Safe, family-oriented community
- Zero sales tax (Delaware standard)
- Lower property taxes than New Castle County
Cons:
- Higher housing costs than Dover ($400K-$520K vs. $260K-$335K)
- Rapid growth = construction, traffic increasing
- Somewhat sterile suburban feel (new development lacks character)
- No VA clinic (drive to Dover or Wilmington)
- Property taxes higher than Kent County/Dover
- Expensive for fixed-income retirees
Bottom line: Middletown is ideal for younger veteran families with kids (those schools!), dual incomes, and need for job market access. Great if you're transitioning from Dover AFB but want better schools and don't mind paying $400K+ for housing. Not ideal for retirees on fixed income.
3. Newark - "College Town with VA Access"
Overall Grade: B+
Why it ranks #3: University of Delaware, direct VA Medical Center access, Christiana Mall tax-free shopping, Philadelphia commuting access.
Housing Market
- Median home price: $365,000-$390,000
- Rental market: Extensive (college town)
- Property tax: ~$2,964/year (0.76% New Castle County rate)
- Property tax with 100% exemption: $0
Cost of Living
- Overall index: 103-105 (3-5% above national average)
- Housing: Expensive by Delaware standards
- College town: Inflates rental and housing prices
Employment Opportunities
University of Delaware:
- ~4,000 employees
- Administration, facilities, research, police
- Excellent benefits
- Veteran hiring
ChristianaCare:
- Major hospital system
- Healthcare jobs for medics/corpsmen
- Located in Newark/Wilmington
Commuting to Philadelphia:
- 30 miles to Center City Philadelphia
- SEPTA Regional Rail (R2) connects Newark to Philadelphia
- Drive time: 40-60 minutes
Christiana Mall area:
- Delaware's largest retail corridor
- Management, retail, restaurant jobs
- Tax-free shopping destination
Why it matters: Newark provides access to University employment, healthcare careers, and Philadelphia commuting via train.
VA Healthcare Access
- Wilmington VA Medical Center: 15 miles north (20 minutes)
- Direct access: Closest Delaware city to full-service VA hospital
Quality of Life
- College town vibe: Restaurants, bars, entertainment
- Walkable: Main Street, University campus
- Schools: Christina School District (variable quality)
- Crime: Moderate; college town issues (property crime, underage drinking)
- Recreation: White Clay Creek State Park, University sports/culture
Pros:
- Closest Delaware city to Wilmington VA Medical Center
- University of Delaware employment opportunities
- College town amenities (restaurants, culture, energy)
- SEPTA rail to Philadelphia (car-free commuting option)
- Christiana Mall tax-free shopping
- Better cultural options than Dover
Cons:
- Expensive housing ($365K-$390K median)
- College town negatives (noise, student behavior, seasonal population swings)
- High property taxes (0.76% New Castle County)
- Traffic congestion (I-95 corridor)
- Schools variable quality
- Less military culture than Dover
Bottom line: Newark works for veterans who want college town energy, VA Medical Center proximity, and Philadelphia access. Not ideal for families seeking quiet suburbs or retirees wanting military community.
4. Wilmington - "Delaware's Largest City"
Overall Grade: B
Why it ranks #4: VA Medical Center, finance jobs, urban amenities, train to Philadelphia/NYC, diverse culture.
Housing Market
- Median home price: $295,000-$327,000
- Variation: Wilmington proper affordable; suburbs (Pike Creek, Hockessin) expensive ($400K-$600K+)
- Property tax: ~$2,660/year (0.76% New Castle County)
- Property tax with 100% exemption: $0
Cost of Living
- Overall index: 104 (4% above national average)
- Variation: City cheaper, suburbs expensive
Employment Opportunities
Financial Services (Wilmington's specialty):
- JPMorgan Chase (~5,000 employees)
- Bank of America
- Capital One
- Barclays
- Credit card operations, IT, customer service
Healthcare:
- ChristianaCare (~12,000 employees, Delaware's largest private employer)
- Nursing, medical techs, administration
Philadelphia Commuting:
- 30 miles to Philadelphia
- SEPTA Regional Rail (R2, R3)
- Drive: 35-60 minutes
State Government:
- Many state offices in Wilmington
- Veterans' preference applies
VA Healthcare Access
- Wilmington VA Medical Center: 1601 Kirkwood Highway
- Located in Wilmington: Direct access, no travel needed
- Full-service hospital: Emergency department, specialty care
Quality of Life
- Urban amenities: Restaurants, Riverfront, arts, sports
- Culture: Delaware Art Museum, Grand Opera House, Playhouse Theatre
- Walkable areas: Trolley Square, Riverfront
- Crime: Higher in city proper; suburbs safe
- Schools: City schools struggling; suburbs excellent (Brandywine, Red Clay districts in suburbs)
Pros:
- Wilmington VA Medical Center on-site
- Finance jobs (credit card industry)
- AMTRAK to Philadelphia (30 min), NYC (2 hours), DC (90 min)
- Urban amenities, culture, diversity
- Riverfront revitalization
- Suburbs have excellent schools
Cons:
- High crime in some city neighborhoods
- City schools struggling
- Traffic congestion
- Expensive suburbs ($400K-$600K+)
- High property taxes (0.76%)
- Limited military culture
- Cost of living highest in Delaware
Bottom line: Wilmington works for veterans seeking urban lifestyle, finance careers, or Philadelphia commuting access. VA Medical Center on-site is huge advantage. Not ideal for military community or affordable suburban family living.
5. Lewes - "First Town in the First State" (Beach Town)
Overall Grade: B
Why it ranks #5: Historic beach town, more affordable than Rehoboth Beach, veteran retiree community, Cape Henlopen State Park, quality of life.
Housing Market
- Median home price: $400,000-$600,000
- Wide range: Condos $250K-$350K; single-family $400K-$800K+
- Property tax: ~$1,320-$1,980/year (0.33% Sussex County rate, lowest in Delaware)
- Property tax with 100% exemption: $0
Cost of Living
- Overall index: 99-101 (near national average)
- Property tax: Lowest in Delaware (0.33%)
- Off-season: More affordable fall-spring
Employment Opportunities
- Tourism: Seasonal hospitality, retail, restaurants
- Beebe Healthcare: Rehoboth Beach hospital, healthcare jobs
- Retiree-oriented: Many Lewes residents are retirees; part-time/seasonal work common
- Remote work: Good option if working remotely
Not a major job market: Lewes is for retirees, remote workers, or those with pension income.
VA Healthcare Access
- Sussex County VA Clinic: Georgetown, 21748 Roth Avenue (25 miles, 30 minutes)
- Wilmington VA Medical Center: 90 miles (2 hours)
Challenge: Furthest from comprehensive VA care
Quality of Life
- Beach town charm: Historic downtown, locally-owned shops, festivals
- Cape Henlopen State Park: Beach access, hiking, fishing, WWII towers
- Ferry: Cape May-Lewes Ferry to New Jersey shore
- Culture: Rehoboth Beach Theatre of the Arts nearby, art galleries, summer festivals
- Weather: Mild winters by Mid-Atlantic standards, beach breezes
- Crime: Very low
- Schools: Cape Henlopen School District (good quality)
Pros:
- Beautiful beach town without Rehoboth Beach's resort scene
- Lowest property tax rate in Delaware (0.33%)
- Cape Henlopen State Park (free for disabled veterans)
- Historic character, walkable downtown
- Safe, low crime
- Strong retiree community (many veterans)
- Milder winters than northern Delaware
Cons:
- Expensive housing ($400K-$600K+)
- Limited employment (retiree/tourist economy)
- VA clinic 30 minutes away; VA hospital 2 hours
- Summer tourist crowds
- Hurricane/coastal storm risk
- Limited cultural amenities (small town)
Bottom line: Lewes is ideal for veteran retirees with pension income seeking beach lifestyle without Rehoboth Beach resort prices. Not suitable for young families needing jobs or veterans needing frequent VA specialty care.
6. Smyrna - "Small Town Between Dover & Middletown"
Overall Grade: B
Why it ranks #6: Affordable, safe, good schools, proximity to Dover AFB and Middletown/Wilmington.
Housing Market
- Median home price: $300,000-$380,000
- New development: Rapid growth
- Property tax: ~$1,200-$1,520/year (Kent County rate)
Employment
- Commute to Dover AFB (15 min), Middletown/Amazon (10 min), or Wilmington (30 min)
Quality of Life
- Safe, small-town atmosphere
- Smyrna School District (good quality)
- Near Bombay Hook National Wildlife Refuge
Pros: Affordable, safe, good schools, strategic location Cons: Small town (limited amenities), commute required for most jobs
Bottom line: Affordable bedroom community for Dover AFB or Middletown employment.
7. Georgetown - "Sussex County Seat"
Overall Grade: B-
Why it ranks #7: Affordable, Sussex County government jobs, VA clinic on-site, 20 minutes to beaches.
Housing Market
- Median home price: $280,000-$320,000 (most affordable Sussex County)
- Property tax: ~$924-$1,056/year (0.33% Sussex County rate)
Employment
- Sussex County government
- Agriculture
- Beach tourism (20 min to Rehoboth/Dewey)
VA Healthcare Access
- Sussex County VA Clinic: In Georgetown
- Direct access: On-site clinic
Pros: Affordable, VA clinic, low property taxes, beach proximity Cons: Small town, limited jobs, rural character
Bottom line: Affordable option for southern Delaware; VA clinic access; not a job hub.
8. Rehoboth Beach - "The Nation's Summer Capital"
Overall Grade: C+
Why it ranks #8: Beautiful beach resort, walkable boardwalk, strong retiree community—but very expensive.
Housing Market
- Median home price: $1,000,000-$1,300,000+ (most expensive in Delaware)
- Condos: $400,000-$800,000
- Property tax: ~$3,300-$4,290+/year (even with low 0.33% rate, values are so high it adds up)
Cost of Living
- Extremely high: Resort town pricing
- Off-season: More reasonable fall-spring
Pros: Beautiful beach, boardwalk, restaurants, retiree community Cons: Prohibitively expensive ($1M+ homes), tourist crowds, hurricane risk
Bottom line: Only for wealthy retirees; most veterans can't afford Rehoboth Beach.
Housing Cost Comparison Table
| City/Area | Median Home Price | Property Tax Rate | Property Tax (no exemption) | With 100% Exemption | Annual Savings |
|---|---|---|---|---|---|
| Dover | $262,000-$335,000 | 0.40% | $1,048-$1,340 | $0 | $1,048-$1,340 |
| Smyrna | $300,000-$380,000 | 0.40% | $1,200-$1,520 | $0 | $1,200-$1,520 |
| Georgetown | $280,000-$320,000 | 0.33% | $924-$1,056 | $0 | $924-$1,056 |
| Wilmington | $295,000-$327,000 | 0.76% | $2,242-$2,485 | $0 | $2,242-$2,485 |
| Newark | $365,000-$390,000 | 0.76% | $2,774-$2,964 | $0 | $2,774-$2,964 |
| Middletown | $407,000-$520,000 | 0.50% | $2,035-$2,600 | $0 | $2,035-$2,600 |
| Lewes | $400,000-$600,000 | 0.33% | $1,320-$1,980 | $0 | $1,320-$1,980 |
| Rehoboth Beach | $1,000,000+ | 0.33% | $3,300+ | $0 | $3,300+ |
Key insight: 100% disabled veterans eliminate property taxes entirely. Delaware's already-low property tax rates (0.33-0.76%) mean savings range from $1,000-$3,000+/year depending on location.
Cost of Living Breakdown by Region
Northern Delaware (Wilmington/Newark)
- Overall index: 103-105
- Housing: 277-290
- Groceries: 105-108
- Healthcare: 102-105
- Utilities: 95-100
- Transportation: 105-110
Central Delaware (Dover/Middletown)
- Overall index: 96-99
- Housing: 220-240
- Groceries: 100-102
- Healthcare: 98-100
- Utilities: 95-98
- Transportation: 100-105
Southern Delaware (Beach areas)
- Overall index: 99-145 (varies wildly)
- Housing: 240 (Georgetown) to 400+ (Rehoboth Beach)
- Groceries: 102-105
- Healthcare: 100-103
- Utilities: 95-100
- Transportation: 105-110
National average: 100
Climate Considerations
Northern Delaware (Wilmington/Newark)
- Summers: 75-90°F, humid
- Winters: 25-45°F, occasional snow (5-15 inches/year)
- Precipitation: ~45 inches/year
- Best for: Veterans accustomed to Mid-Atlantic/Northeast climate
Central Delaware (Dover)
- Summers: 80-95°F, humid
- Winters: 28-48°F, light snow (10-15 inches/year)
- Slightly warmer than north
Southern Delaware (Beaches)
- Summers: 75-88°F, ocean breezes moderate heat
- Winters: 32-50°F, mild, occasional snow (5-10 inches/year)
- Most moderate climate in Delaware
Veteran Health Considerations
Heat/humidity: Summers can be challenging for veterans with cardiovascular or respiratory conditions; beach areas offer relief via ocean breezes Cold/snow: Mild compared to upstate Pennsylvania or New England, but winters still require heating and snow removal
Where Veterans Actually Live (Top Areas)
- New Castle County (Wilmington/Newark area): ~30,000-35,000 veterans
- Kent County (Dover area): ~15,000-18,000 veterans
- Sussex County (Beach/Georgetown area): ~13,000-16,000 veterans
Concentration: Dover area has highest concentration relative to population due to Dover AFB.
Decision Matrix: Which City is Right for You?
Choose Dover if:
- You want most affordable Delaware city
- You're transitioning from Dover AFB or Air Force background
- You value state government jobs with veterans' preference
- You want military community
- You need VA clinic access without driving to Wilmington
- You're okay with small city feel
- Cost of living below national average is priority
Choose Middletown if:
- You have kids (best schools in Delaware)
- You want new construction
- You need access to Dover AFB AND Wilmington jobs
- You can afford $400K-$520K housing
- You work for Amazon or can commute
- You want safe, family suburbs
Choose Newark if:
- You want college town energy
- You need direct Wilmington VA Medical Center access
- You might work at University of Delaware
- You'll commute to Philadelphia via SEPTA
- You value walkability and restaurants
- You can afford $365K-$390K housing
Choose Wilmington if:
- You work in finance (credit card industry)
- You want urban lifestyle
- You need Wilmington VA Medical Center access daily
- You'll commute to Philadelphia
- You want AMTRAK access to NYC/DC
- You can afford suburbs ($400K-$600K) or accept city living
Choose Lewes if:
- You're a retiree with pension income
- You want beach lifestyle without resort scene
- You can afford $400K-$600K housing
- You value quality of life over job access
- You're okay with VA clinic 30 min away
- You want lowest property tax rate in Delaware
Choose Smyrna if:
- You want affordable option near Dover AFB
- You need good schools at lower cost than Middletown
- You're willing to commute to Dover, Middletown, or Wilmington
- You value small-town safety
Choose Georgetown if:
- You want most affordable southern Delaware option
- You work for Sussex County government
- You want VA clinic access in southern Delaware
- You want beach proximity (20 min) without beach prices
Avoid Rehoboth Beach unless:
- You're a wealthy retiree ($1M+ housing budget)
- Money is no object
- You must have boardwalk lifestyle
The Harsh Reality: Can You Actually Afford Delaware?
Let's run real numbers for typical veteran scenarios.
Scenario 1: E-7 Retiree, 100% Disabled, Single
Income:
- Military retirement: $32,000/year
- VA disability (100%): $3,946/month = $47,352/year
- Total: $79,352/year
Can afford (using 28% housing cost ratio):
- Maximum housing payment: $1,850/month
- Affordable home price: ~$350,000 (with VA loan, zero down)
Delaware cities you can afford:
- Dover: $262K-$335K ✓ (comfortably)
- Georgetown: $280K-$320K ✓ (comfortably)
- Smyrna: $300K-$380K ✓ (barely, at lower end)
- Wilmington: $295K-$327K ✓ (barely, at lower end)
- Middletown: $407K-$520K ✗ (too expensive)
- Newark: $365K-$390K ✗ (too expensive)
- Lewes: $400K-$600K ✗ (too expensive)
Reality: You can afford Dover, Georgetown, and lower-end Wilmington/Smyrna. Middletown, Newark, and beach towns are out of reach.
Scenario 2: O-4 Retiree, 70% Disabled, Married, Dual Income
Income:
- Military retirement: $50,000/year
- VA disability (70% with dependents): $2,000/month = $24,000/year
- Spouse income: $55,000/year
- Total: $129,000/year
Can afford:
- Maximum housing payment: $3,010/month
- Affordable home price: ~$575,000
Delaware cities you can afford:
- All cities except Rehoboth Beach ✓
Reality: With dual income and officer retirement, you can afford anywhere in Delaware except million-dollar Rehoboth Beach.
Scenario 3: E-8 Retiree, 100% Disabled, Dover AFB Civilian Job
Income:
- Military retirement: $36,000/year
- VA disability (100% with dependents): $47,300/year
- Dover AFB civilian GS-11: $70,000/year
- Total: $153,300/year
Can afford:
- Maximum housing payment: $3,577/month
- Affordable home price: ~$685,000
Delaware cities you can afford:
- Everywhere including Lewes; Rehoboth Beach possible at lower end
Reality: Military retirement + VA disability + federal civilian job = comfortable Delaware living anywhere except luxury Rehoboth Beach.
Key Takeaways
-
Dover offers best overall value for veterans - Affordable housing, military community, state/federal jobs, VA clinic, lowest cost of living
-
Middletown best for families with kids - Top schools, safe suburbs, Amazon employment, but expensive ($400K-$520K)
-
100% disabled veterans eliminate property taxes entirely - Saves $1,000-$3,000+/year depending on location; huge benefit
-
Zero sales tax benefits everyone - Save $3,000-$4,000/year vs. Pennsylvania, New Jersey, Maryland
-
Commuting to Philadelphia/Baltimore expands options - Live in Delaware, work in higher-wage markets, keep Delaware tax advantages
-
Dover AFB drives military culture - Kent County (Dover area) has strongest military community in Delaware
-
Small state = limited choices - Only 3 counties; if you need geographic diversity, Delaware isn't for you
-
Beach towns expensive - Lewes ($400K-$600K) barely affordable; Rehoboth ($1M+) out of reach for most veterans
-
Most veterans can afford Dover, Georgetown, Smyrna - At $260K-$380K, these cities work on military retirement + VA disability alone
-
Dual income or civilian job required for Wilmington/Newark/Middletown - At $365K-$520K, these cities need additional income beyond military retirement
The bottom line: Delaware works exceptionally well for veterans who:
- Are 100% disabled (property tax exemption + school tax credit = massive savings)
- Want Mid-Atlantic location without Mid-Atlantic costs
- Value zero sales tax (saves thousands annually)
- Prefer small state with short commutes
- Are willing to live in Dover/Kent County for affordability + military community
Delaware won't work for veterans who:
- Need robust defense contractor job market (limited in-state; must commute)
- Want large state with geographic variety (Delaware is tiny)
- Need warm weather year-round (Delaware has cold winters)
- Are on fixed income and need beach living (only affordable if you avoid Rehoboth)
Resources
- Delaware Office of Veterans Services: (302) 739-2792 or (800) 344-9900 | vets.delaware.gov
- Housing market data: Zillow.com, Redfin.com
- Cost of living calculators: BestPlaces.net
- VA facility locator: VA.gov/find-locations
- Wilmington VA Medical Center: (800) 461-8262
- County assessment offices:
- New Castle: (302) 323-2600
- Kent: (302) 736-2077
- Sussex: (302) 855-7878
- Delaware state jobs (veterans' preference): statejobs.delaware.gov
Information current as of January 2025. Housing prices change rapidly - verify current market conditions before making decisions. This analysis is based on median prices and typical veteran income scenarios.