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 | $1,500 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $519,609 | 0.38% | F |
| 3BR | $2,400 | $627,539 | 0.38% | F |
| 4BR | $2,820 | $826,544 | 0.34% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 02822 in Exeter, RI, reveals two distinct gross-yield scenarios based on the Fair Market Rent (FMR) and market rent figures. For a two-bedroom unit, the annualized FMR for FY 2024 is $2160, while the Census ACS reports an average market rent of $1,267 per month, equating to $15,204 annually.
Using the median home value of $612,911 as a basis, the gross yield when considering the FMR would be approximately 0.35%. This is calculated by dividing the annual FMR ($2160) by the median home value ($612,911). In contrast, if we use the market rent figure, the gross yield jumps significantly to about 2.48%, derived from the annual market rent ($15,204) divided by the median home value ($612,911).
The disparity between these yields highlights the financial implications of participating in the Section 8 program versus renting at market rates. Given that only 20.6% of residents in Exeter are renters, it suggests a limited pool of potential tenants, which could affect the reliability of achieving the higher market rent consistently. The N/A-day DOM (days on market) indicates incomplete data regarding how quickly properties are rented, adding uncertainty to the analysis.
While the market rent scenario presents a more attractive gross yield, the lower renter density and incomplete DOM data suggest that landlords might face challenges in maintaining full occupancy. The FMR scenario, though offering a much lower gross yield, provides a stable income source guaranteed by the government, which can be particularly appealing to small-portfolio investors seeking steady cash flow over potentially higher returns.
In summary, the gross yield under the Section 8 FMR is 0.35%, whereas the gross yield at market rent is 2.48%. Investors should weigh the benefits of guaranteed rental income against the potential for higher yields when deciding on participation in the Section 8 program for ZIP 02822.
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.