Location: Providence-Fall River, RI | Metro: Providence-Fall River, RI-MA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,350 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $434,185 | 0.41% | F |
| 3BR | $2,200 | $493,379 | 0.45% | F |
| 4BR | $2,490 | $524,079 | 0.48% | F |
U.S. Census Bureau data (2024)
The FMR of $1,570 is significantly below the median home value of $471,305 in Somerset, MA. This disparity indicates that rental properties are generally less expensive than owned ones in the area.
In Somerset, only 1.2% of the population are renters, which suggests a predominantly homeowner-focused community. The median income in Somerset is $129,253, which is relatively high compared to national averages, implying that residents have the financial capacity to purchase homes rather than rent.
If we assume that the market rent is higher than the FMR, landlords who accept Section 8 vouchers would be renting their properties below the open-market rate. For instance, if the market rent were $1,800, the gap between the FMR and the market rent would be $230, or approximately 14.4%. Accepting Section 8 tenants could mean a reduction in potential rental income, but it ensures a steady stream of tenants who are financially backed by the government.
Investors should consider that while accepting Section 8 tenants might reduce the rental income, it can still be a viable strategy given the high median home values and incomes in Somerset. The reduced vacancy risk and stable tenant base could outweigh the lower rents.
To conclude, the decision to accept Section 8 tenants should be weighed against the potential for higher market rents. Given the limited rental market in Somerset, landlords might benefit from diversifying their tenant mix to include those with housing vouchers.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.