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 | $1,570 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,660 | $316,429 | 0.52% | F |
| 2BR | $2,070 | $507,453 | 0.41% | F |
| 3BR | $2,540 | $653,942 | 0.39% | F |
| 4BR | $2,880 | $984,806 | 0.29% | F |
| 5BR | $3,341 | $1,207,709 | 0.28% | F |
U.S. Census Bureau data (2024)
The potential risks for Section 8 investments in ZIP code 02818, located in East Greenwich, RI, include tenant turnover, vacancy exposure, and deferred maintenance. The market rent for the area stands at $2,174, while the Fair Market Rent (FMR) for FY 2024 is $2,170. This slight discrepancy can lead to higher tenant turnover as some tenants might prefer market-rate rentals that offer better amenities or locations. Additionally, the vacancy exposure is a concern due to the lack of data on Days on Market (DOM), which suggests an unpredictable rental market. Landlords should be prepared for extended periods of vacancy, especially if they do not have a strong pipeline of prospective tenants.
The deferred maintenance risk is significant given the typical home value of $713,187 and the median income of $139,217. While the home values indicate a potentially affluent neighborhood, the median income suggests that residents may struggle to afford substantial maintenance costs. Landlords must be ready to cover these expenses, which can be considerable, without relying on tenants to maintain the property's condition.
However, these risks are somewhat mitigated by the high renter share of 21.3%. A larger proportion of renters in the area typically translates into higher demand for rental properties, including those accepting Section 8 vouchers. This increased demand can help landlords fill vacancies more quickly and reduce the financial impact of tenant turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.