Location: Providence-Fall River, RI | Metro: Providence-Fall River, RI-MA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,360 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
U.S. Census Bureau data (2024)
ZIP 02720, located in Fall River, MA, is an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the Providence-Fall River, RI-MA HUD Metro FMR Area in fiscal year 2024 is set at $1,480, which is significantly lower than the market rent of $1,805. This creates a spread of $325 per unit, allowing landlords to secure a steady stream of income that is guaranteed by the government. Additionally, the median home value in ZIP 02720 is $453,040, making it a relatively affordable area for property acquisition.
The cash-flow anchor role is further reinforced by the fact that the area has a 62.5% renter share, indicating a high demand for rental properties. With a median income of $62,196, many residents will likely qualify for the Section 8 program, ensuring a stable tenant pool. Landlords can expect consistent occupancy rates and reliable rental payments, even if market conditions fluctuate.
While the 0.2% price-cut share and N/A-day Days on Market (DOM) suggest limited potential for rapid appreciation, these metrics do not undermine the value of ZIP 02720 as a cash-flow anchor. Instead, they highlight the stability and predictability of the local real estate market. For small-portfolio investors seeking to balance risk and reward, incorporating units in ZIP 02720 can provide a solid foundation for their investment strategy.
To summarize, ZIP 02720 stands out as a cash-flow anchor due to the favorable spread between FMR and market rent, high renter share, and median income levels that support Section 8 participation. These factors contribute to a low-risk, high-reward investment opportunity, particularly for those looking to diversify their portfolios with government-backed rental income.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.