Bay Colony

Bay Colony in Dagsboro, Delaware

Bay Colony

Indian River Dr,

Dagsboro, DE 19939

All Ages

Dagsboro, Sussex County

On the south shore of Indian River Bay, off Irons Lane

New and Resale Homes

Single-family homes

No Golf Course

Bay beach, 250-slip marina, pool, clubhouse, courts

Welcome toBay Colony

Bay Colony is a community of about 390 single-family homes on the south shore of Indian River Bay, off Irons Lane, with a Dagsboro mailing address. It has a bay beach reached by boardwalks, a 250-slip marina, an outdoor pool with a hot tub, a clubhouse, and tennis and pickleball courts. Homes were built from the late 1980s to 2023, on lots of about a quarter acre. Bethany Beach is about seven miles away by road.

Bay Colony Market Snapshot, August 2026

In August 2026 there were 5 homes for sale in Bay Colony at Dagsboro, which is 5.0 months of supply at the pace homes were selling. One more went under contract during the month.

2 homes closed in August at a median of $922,505, after a median 50 days on the market. On 2 sales that is one month's result rather than a trend, so it is worth reading next to the inventory above rather than on its own.

Based on information from Bright MLS for the period August 1, 2026 through August 31, 2026.

Own a home in Bay Colony? We send owners a free quarterly Bay Colony market report by email: what sold, what it sold for, and how long it took. Ask for it with the contact form on this page, or call us at 302-549-5164.

Bay Colony in Dagsboro, Delaware

Experience Gets ResultsBay Colony Featured Listings

Getting Your BearingsWhere Bay Colony Sits

Bay Colony sits on the south shore of Indian River Bay, about two miles north of Route 26 on Irons Lane, about seven miles by road from Bethany Beach.

  • Hospital. Beebe's South Coastal emergency department in Millville is about four miles away and open around the clock. Beebe's main hospital is in Lewes.
  • Town. Millville and Ocean View are a few minutes east along Route 26, and the Town of Dagsboro is to the west.
  • Beaches. Bethany Beach is about seven miles away by road, Rehoboth Beach about 20 miles, and the community has its own beach on the bay.
  • Getting around. Irons Lane runs south to Route 26, which runs east to Bethany Beach and Route 1, and west to Dagsboro and Route 113.
  • Inside the community. About 390 single-family homes, a bay beach, a pool with a hot tub, a clubhouse, tennis and pickleball courts, and a separately owned 250-slip marina.

What Is Around YouDay To Day From Bay Colony

  • Medical. Beebe's South Coastal emergency department, and Beebe Walk-In Care on Docs Place in Millville, open every day.
  • Groceries. Giant at Millville Town Center on Route 26, and Weis Markets on Old Mill Road in Millville.
  • Restaurants. Ocean View Brewing Company on Atlantic Avenue in Ocean View, and Mickey's Family Crab House on Jefferson Bridge Road.
  • Nightlife. Bethany Brewing on Hickman Road in Ocean View, with live music in season, and the Bethany Beach boardwalk.
  • Parks and outdoors. Holts Landing State Park on the same shore of the bay, with a crabbing pier and a boat ramp, and Delaware Seashore State Park at Indian River Inlet.
  • Shopping. Millville Town Center for everyday stores and Bethany Beach for small shops. Delaware charges no sales tax.

Getting AroundHow Far Is Everything From Bay Colony?

Driving miles from Indian River Dr, Dagsboro, to each spot below.

  • 22 miles

    Atlantic General Hospital

    Nearest hospital, in Berlin, Maryland

  • 5 miles

    Beebe South Coastal Emergency Department, Millville

    Nearest emergency room, open 24 hours

  • 8 miles

    Bethany Beach, at the boardwalk

    Nearest ocean beach

  • 57 miles

    Legislative Hall, Dover

    The state capital

  • 106 miles

    Rodney Square, Wilmington

    Downtown Wilmington

  • 126 miles

    Philadelphia International Airport

    For flights

  • 112 miles

    BWI Marshall Airport

    For flights

Driving miles measured September 2026 from the address above to each named spot, rounded. We give miles rather than drive times on purpose: from Memorial Day to Labor Day, beach traffic on Route 1 can make the same trip take a good deal longer. Call us at 302-549-5164 and we will tell you what a drive really looks like in season.

If You Like Bay ColonyThree Others Worth Your Time

Not the nearest pins on a map, the ones that answer the same question.

  • Bethany Bay. A few miles east on the same shore of Indian River Bay, mostly condominiums with a boat ramp and fishing pier, at a lower price point.
  • Marina at Peppers Creek. Also in Dagsboro, with slips for sale at its own marina on Peppers Creek, which runs out to Indian River Bay, and newer single-family homes.
  • Bay Forest. In Ocean View on a tributary of Indian River Bay, with single-family homes and villas and a larger amenity program, for a buyer weighing newer construction.

All three, like Bay Colony, are not age restricted. Call us at 302-549-5164 and we will tell you what is for sale in each of them right now.

Learn More AboutBay Colony

A Single-Family Community With Its Own Marina on Indian River Bay

Bay Colony sits on the south shore of Indian River Bay, about two miles north of Route 26 on Irons Lane, west of Bethany Beach.
What is here: about 390 single-family homes on wooded streets, most on lots of about a quarter acre.
The water: a bay beach reached by several boardwalks, and a 250-slip marina about four nautical miles west of Indian River Inlet.
The history: the community was started in 1982, and homes have gone up a few at a time ever since. The newest we found on record were built in 2022 and 2023.
Across the road: Cripple Creek Golf and Country Club is across Irons Lane. It is a separate club with its own membership.
With 5 homes for sale in August, there is some choice here right now. Call us at 302-549-5164 and we will walk you through what is available.

About the Homes

Bay Colony is all single-family homes, built over about 35 years by a number of builders, so no two streets look quite the same.
Size: recent listings run from about 2,400 to 4,200 square feet, most with three to five bedrooms and two car garages. Older, smaller homes do come up.
Age: homes were built from the late 1980s to 2023. A 1994 home and a 2023 home can sit on the same street, so condition varies a great deal.
Floor plans: past plans include the Seabrook and the Ocean Breeze at about 2,200 square feet, the Cavanaugh at about 2,580, and the Gabrielle at about 4,080. The plans below are examples, not a current builder lineup.
Recent prices: homes sold from about $600,000 in 2024 to about $1,000,000 in August 2026, and listings on the market in September 2026 run from about $620,000 to $1,100,000.
Lots: most lots are about a quarter acre, many with mature trees.
The exact size, age and lot of any home is on its listing, and we will pull it for you.

About the Amenities

The shared amenities belong to the property owners association. The marina is the exception.
Beach: a sandy beach on Indian River Bay, reached by several boardwalk paths.
Pool: an outdoor pool with a hot tub.
Clubhouse: a community clubhouse.
Courts: tennis and pickleball courts.
Marina: a 250-slip marina with a launch ramp for slip owners and renters. It is owned and run separately. See the Story tab.

Why the Marina Is Its Own Association

The marina at Bay Colony is a condominium, owned by the Bay Colony Marina Slip Owners Association. Buying a home here does not come with a slip.
Slips: 250 slips, most of them 25 feet, with about 70 at 35 feet and a handful larger. Slips are bought and sold on their own, or rented from owners.
Separate fees: a slip carries its own association fee, on top of the Bay Colony property owners fee.
The water: the marina says average depth is about 8 feet, shallower along the riprap. It is about four nautical miles to Indian River Inlet.
What is there: electric and non-potable water at the docks, a launch ramp, restrooms and a dockmaster on weekends in season. There is no fuel dock and no transient slips.
Access: the marina is behind a gate for slip owners and renters.
If a slip matters to you, tell us early. We will check what slips are for sale and what the slip association charges.

About the Area

Bay Colony has a Dagsboro mailing address but sits miles east of the Town of Dagsboro, in unincorporated Sussex County.
Beaches: Bethany Beach is about seven miles away by road, and Rehoboth Beach is about 20 miles north.
Health care: Beebe's South Coastal emergency department in Millville is about four miles away and open around the clock. Beebe's main hospital is in Lewes.
Everyday errands: Millville Town Center on Route 26 has Giant and other shops.
Schools: Indian River School District. Confirm school assignments with the district for any specific address.

About the HOA

Bay Colony has a property owners association for the community. The marina has its own association.
Recent figures: home sales in 2024, 2025 and August 2026 all show a fee of $100 a month, or $1,200 a year.
What the fee covers: the shared amenities and common areas: the beach and boardwalks, the pool, the clubhouse and the courts. Confirm anything else in the association documents.
Slip fees: a separate fee to the marina association, only if you own a slip.
Fees change. We will get the current figures for any home you are considering.

What You Get

The practical details of owning here.
Utilities: public water and public sewer. Some homes also have a well for irrigation.
Heat: electric heat pumps, geothermal or propane, depending on the home.
Maintenance: at $100 a month the fee is for the shared amenities. Plan on looking after your own home and yard, and confirm it for the specific home.
Rules: the association's governing documents set the rules on exterior changes and rentals. Confirm them for the specific home.
Ask us for the association documents before you write an offer.

About the Taxes

Read this first: Active Adults Realty is not a tax, legal or financial advisor and nothing below is advice. Confirm every figure with your own tax professional and with Sussex County before you rely on it.
The state picture: Delaware has no state sales tax, no estate tax and no inheritance tax, and Social Security is not taxed.
The local picture: Bay Colony is outside the Town of Dagsboro limits, in unincorporated Sussex County, so the property tax bill is county and school tax with no town tax on top. Sussex County reassessed every property recently, so older tax figures on a listing may not reflect what you will pay.
Call 302-549-5164 and we will pull the recorded figures for the specific home you are considering.

Bay ColonyFloor Plans

Browse the floor plans to see which model best suits you:

3+ Bed

3+ Bath

2200 sq. ft

3+ Bed

2+ Bath

2200 sq. ft.

3+ Bed

3.5+ Bath

2582 sq. ft.

4+ Bed

3.5+ Bath

4080 sq. ft.

Disclaimer: While we strive to do our best to have the most current information available on our website, please note that availability of models, their prices, and square footage are subject to change without notice by the Builder. For the most current info on models available, pricing and square footage, please contact us.
Call 302-549-5164 or email [email protected] You may want to read this article on Understanding Base Model Pricing.
Active Adults Realty office: 302-424-1890