Location: Providence-Fall River, RI | Metro: Providence-Fall River, RI-MA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,760 |
| 1 Bedroom | $1,860 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $2,840 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
U.S. Census Bureau data (2024)
To determine if you should invest in ZIP 02823 for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1690 cover your debt service on a potential property?
No: Do not purchase a property in this ZIP code for Section 8 tenants. The FMR must exceed your debt service to ensure profitability.
Yes: Proceed to the next question.
2) How does the market rent compare to the FMR?
Market rent is above FMR: It depends on how much higher the market rent is compared to the FMR. If the difference is significant, consider whether the Section 8 program can still provide sufficient returns.
Market rent equals FMR: This ZIP code is suitable for Section 8 investments, as the FMR aligns with the market rent, providing stable income.
Market rent is below FMR: Yes, purchasing a property here for Section 8 is advisable. The FMR exceeds the market rent, which could offer better returns than typical market rentals.
3) Is there enough rental demand in ZIP 02823?
Rental demand is low (less than 38.9% of residents are renters): No, do not invest. The percentage of renters is already at 38.9%, and any lower would suggest insufficient demand.
Rental demand is moderate (around 38.9% of residents are renters) and days on market (DOM) is high: It depends. A higher DOM suggests slower turnover, which could affect cash flow. Evaluate the local housing market trends and vacancy rates to make an informed decision.
Rental demand is high (above 38.9% of residents are renters) and DOM is low: Yes, this ZIP code is ideal for Section 8 investments. The combination of a high percentage of renters and a low DOM indicates strong demand and quick property turnover.
Note: Specific market rent figures and DOM data for ZIP 02823 were not provided. For accurate analysis, these details must be obtained and considered alongside the FMR and rental demand percentages.
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.