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 | $1,190 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $387,223 | 0.4% | F |
| 3BR | $1,880 | $527,621 | 0.36% | F |
| 4BR | $2,240 | $600,129 | 0.37% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 02830, Burrillville, RI, reveals a distinct gap between government-subsidized rental income and market-driven rental income when compared to the median home value.
Using the Fair Market Rent (FMR) for a two-bedroom apartment set at $1510 per month for fiscal year 2024, the annual rental income would be $18,120. Dividing this figure by the median home value of $474,183 yields an implied gross yield of approximately 3.8%. This calculation provides a baseline for what landlords might expect if they participate in the Section 8 program.
In contrast, the market rent for a similar property, based on Census ACS data, stands at $1,096 per month. Annualizing this amount gives us $13,152 in yearly rental income. When this is divided by the median home value, it results in an implied gross yield of roughly 2.8%. This lower yield reflects the current market conditions without government subsidies.
The higher gross yield associated with Section 8 participation makes it a more attractive option for landlords in Burrillville. However, the reality of the situation must also consider the local rental market dynamics. With only 17.3% of the population being renters, the demand for rental properties, including those in the Section 8 program, may be limited. Additionally, the N/A-day DOM (days on market) suggests that there isn't enough recent data to accurately gauge how quickly rental units are typically filled, which can affect the consistency of rental income.
Given these factors, while the Section 8 program offers a higher gross yield, the actual performance could be influenced by the local rental density and the speed at which units are rented. For small-portfolio investors and landlords, the decision to participate in Section 8 should weigh the benefits of higher yields against the potential challenges of lower rental demand and administrative requirements.
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.