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 | $1,540 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,630 | $459,449 | 0.35% | F |
| 2BR | $2,030 | $525,664 | 0.39% | F |
| 3BR | $2,490 | $611,847 | 0.41% | F |
| 4BR | $2,830 | $736,178 | 0.38% | F |
| 5BR | $3,283 | $865,829 | 0.38% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 02809, which includes Bristol, RI, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1830, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2369. This discrepancy translates into a $539 difference, representing approximately 27% of the market rent.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the costs associated with housing voucher tenants at rates below the open-market level. The $539 gap means that landlords must accept a lower rental rate compared to what they could charge in the private market. However, this does not necessarily mean a loss, as the government guarantees payment through the Housing Choice Voucher Program.
In the context of Bristol, RI, where 33.9% of residents are renters and the median home value stands at $598,863, the decision to participate in Section 8 can be strategic. With a median income of $97,764, many potential tenants might find it challenging to afford market rents without assistance. Therefore, offering units at the FMR rate can ensure consistent occupancy, which is crucial for maintaining steady cash flow and property management stability.
To illustrate the financial impact, consider a landlord with a single-unit property. At the market rent of $2369, the landlord would expect to receive this amount monthly. By accepting a Section 8 tenant at the FMR rate of $1830, the landlord sacrifices $539 per month. However, this sacrifice is offset by the guaranteed payment structure, which minimizes the risk of unpaid rent and eviction costs.
For those considering entering the Section 8 market in Bristol, RI, it's important to weigh the benefits against the costs. While the rental income is lower, the security of having a tenant who is backed by federal funds can lead to higher long-term yields. Additionally, the local rental market dynamics, characterized by a substantial portion of renters, make it a viable option for maintaining a competitive edge in the area.
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.