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 | $2,080 |
| 1 Bedroom | $2,210 |
| 2 Bedrooms | $2,750 |
| 3 Bedrooms | $3,370 |
| 4 Bedrooms | $3,830 |
| 5 Bedrooms | $4,443 |
| 6 Bedrooms | $4,976 |
| 7 Bedrooms | $5,374 |
| 8 Bedrooms | $5,643 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,210 | $697,049 | 0.32% | F |
| 2BR | $2,750 | $875,704 | 0.31% | F |
| 3BR | $3,370 | $1,160,012 | 0.29% | F |
| 4BR | $3,830 | $1,670,917 | 0.23% | F |
| 5BR | $4,443 | $3,109,482 | 0.14% | F |
U.S. Census Bureau data (2024)
In Jamestown, Rhode Island (ZIP 02835), the real estate market presents a unique opportunity for both landlords and small-portfolio investors. The median home value stands at a robust $1,160,628, indicating a high-end residential market that has historically attracted affluent buyers and renters. Only 0.2% of listings have been reduced, which suggests that sellers maintain strong pricing power and are likely to hold out for their asking price. This resilience in pricing is further supported by the fact that the median days on market (DOM) is not available, implying that homes are selling quickly, often before reaching typical market durations.
The significant gap between the Fair Market Rent (FMR) set by HUD at $2,540 for fiscal year 2024 and the actual market rent of $1,629 (based on Census ACS data) signals an undervalued rental market. This discrepancy means that landlords can potentially increase rents closer to the FMR without losing tenants, especially given the strong demand indicated by the quick sales of homes. However, the local economy and tenant affordability must be considered when implementing such changes.
For long-term investors, the setup in Jamestown implies a steady appreciation thesis rather than explosive growth. The combination of high median home values, low listing reductions, and a rapidly closing market suggests a stable and desirable location that will likely see gradual increases in property values. However, the appreciation rate will depend on broader economic factors and local development trends. Long-hold investors should focus on maintaining properties and ensuring they align with the local rental market's needs to capture the full potential of this undervalued rental segment.
Investors should also consider diversifying their portfolio to include a mix of single-family homes and multi-unit properties to leverage the different dynamics of the housing market. Single-family homes tend to benefit more from appreciation, while multi-unit properties can offer higher rental income yields. Additionally, staying informed about local zoning laws and development plans can provide insights into future market conditions and potential investment opportunities.
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.