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 | $1,510 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,780 |
| 5 Bedrooms | $3,225 |
| 6 Bedrooms | $3,612 |
| 7 Bedrooms | $3,901 |
| 8 Bedrooms | $4,096 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,610 | $227,567 | 0.71% | D |
| 2BR | $2,000 | $393,383 | 0.51% | F |
| 3BR | $2,450 | $549,292 | 0.45% | F |
| 4BR | $2,780 | $653,210 | 0.43% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 02828, Smithfield, RI, reveals a favorable cash flow scenario. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,620 per month, which is notably higher than the average market rent of $1,070 based on Census ACS data. This means that landlords who accept Section 8 vouchers can expect to cash flow comfortably, even with the administrative complexities involved.
To understand the financial landscape better, let's consider the median home value in Smithfield, which stands at $517,092. By calculating the rent-to-price ratio using the HUD FMR, we find that it is approximately 2.9%, indicating that rental income could be a significant portion of the overall property value. This ratio suggests that the rental market supports the investment in residential properties, especially for those willing to engage with the Section 8 program.
The dynamics between renting and buying in Smithfield are also important. While specific data on median Days on Market (DOM) and percentage of price cuts are not available, the general trend indicates that the housing market is stable. The high median home value combined with a lower average market rent implies that there is a strong demand for affordable housing options, making Section 8 units particularly attractive.
In summary, the HUD FMR of $1,620 allows Section 8 investors to achieve positive cash flow, even with the current market rent at $1,070. The robust rent-to-price ratio and the stable housing market present a compelling case for investment in Smithfield, RI. The strongest angle for investors here is likely cash flow, given the disparity between HUD FMR and market rent.
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.