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 | $1,940 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,560 |
| 3 Bedrooms | $3,140 |
| 4 Bedrooms | $3,560 |
| 5 Bedrooms | $4,130 |
| 6 Bedrooms | $4,626 |
| 7 Bedrooms | $4,996 |
| 8 Bedrooms | $5,246 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,560 | $567,183 | 0.45% | F |
| 3BR | $3,140 | $712,179 | 0.44% | F |
| 4BR | $3,560 | $1,034,059 | 0.34% | F |
| 5BR | $4,130 | $1,568,881 | 0.26% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 02806, which covers parts of Barrington, RI, presents an interesting scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $2180, while the Census American Community Survey (ACS) reports the average market rent at $1943. This means that the FMR exceeds the market rent by $237, or approximately 12.2%. For landlords, this gap translates into a higher potential rental income compared to the open market, making it a yield play.
The higher FMR allows landlords to charge more than the typical market rate when renting to voucher holders. This is particularly beneficial in Barrington, where only 11.5% of residents are renters, indicating a smaller pool of potential tenants in the open market. Given the median home value of $784,950 and a median income of $153,198, many residents might find it more financially prudent to own rather than rent. Thus, the opportunity to rent at a rate above the market average through the Section 8 program can be advantageous for property owners.
However, landlords should also consider the costs associated with housing voucher tenants. These include administrative overheads, such as managing the paperwork required by the program, and the potential for longer vacancy periods due to the limited number of voucher holders in the area. Additionally, the maintenance standards for Section 8 properties are typically higher, which could lead to increased expenses for landlords aiming to comply with these regulations.
In summary, the $237 premium on FMR over market rent makes the Section 8 program a yield play in ZIP 02806. Despite the additional costs and complexities involved, the higher rental income can be a significant draw for landlords in Barrington, especially given the local context of low rental demand and high median home values.
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.