Location: Providence-Fall River, RI | Metro: Providence-Fall River, RI-MA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,440 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 02802 operate under the guidance of the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1850. This figure represents the maximum amount that the housing authority will pay towards the rent subsidy for a unit of this size.
The voucher system works by covering the difference between what a tenant can afford and the actual rent. Typically, tenants contribute approximately 30% of their adjusted income towards rent. For instance, if a tenant's monthly income is $1500, they would contribute around $450 towards the rent. The remaining amount up to the $1850 SAFMR is covered by the government, making it a reliable source of income for landlords.
In addition to the base rent, there are utility allowances that can vary based on the type of utilities required in the property. These allowances are also part of the total compensation package and can add to the landlord's income. However, these allowances are separate from the base rent and are calculated according to the specific needs of the unit.
Given that the local market rent is currently unavailable, we can still provide a clear understanding of how the reimbursement works. If the market rent is higher than the SAFMR, landlords will face a gap that they must either absorb or find ways to bridge. Conversely, if the market rent is lower than the SAFMR, landlords might see a surplus, where the government pays more than the market rate.
To illustrate, let's assume the market rent for a 2BR in ZIP 02802 is $1700. In this case, the landlord would receive the full $1700 plus any applicable utility allowances, resulting in a surplus since the government's reimbursement rate is higher than the market rent. If the market rent were $2000, the landlord would receive only $1850 from the government, creating a $150 shortfall that they would need to address.
The typical reimbursement gap or surplus for a 2BR voucher in ZIP 02802, therefore, depends on the actual market rent. Landlords should be aware of these dynamics and monitor market conditions closely to make informed decisions about participating in the Section 8 program.
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.