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 | $1,490 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,970 | $312,399 | 0.63% | D |
| 3BR | $2,410 | $493,868 | 0.49% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,760 for ZIP code 02838 (Manville, RI) can sufficiently cover the mortgage payments on a median-priced home valued at $436,485. According to recent data, the average monthly mortgage payment for a median-priced home in this area, assuming a 30-year fixed-rate mortgage at an interest rate of 4%, would be around $2,080. This means that the FMR alone does not cover the mortgage payment, leaving a shortfall of approximately $320 per month. However, it's important to note that many Section 8 properties are older homes that may have been purchased before the recent surge in housing prices, or they could be financed through other means such as lower interest rates or different loan terms.
The demand for rental properties in Manville, RI, stands at 35.5% of the total housing stock. An investor might worry if this percentage is high enough to ensure steady occupancy. While 35.5% may seem low compared to some urban areas, it indicates a significant portion of the housing stock is already rented out, suggesting a reasonable level of demand. Additionally, the rental vacancy rate is not provided, which would offer further insight into how competitive the rental market is. However, the percentage of renters does suggest a viable market for rental properties, especially those catering to low-income families through programs like Section 8.
The final concern is whether voucher amounts will keep up with the rising market rents, currently averaging at $1,628. The FMR of $1,760 is designed to reflect the 40th percentile of market rents, meaning that a substantial number of rental units are priced below this amount. While the voucher amount might not fully cover the market rent, it is intended to subsidize a portion of it, making it feasible for tenants to find suitable housing. It's also worth noting that the voucher system is periodically adjusted based on local market conditions, although these adjustments may lag behind rapid increases in market rents.
In conclusion, while the FMR of $1,760 does not fully cover the mortgage on a median-priced home in Manville, RI, it still represents a significant subsidy for low-income tenants. The rental demand at 35.5% suggests a stable market, and although the voucher amount might not match the exact market rent, it provides a valuable support mechanism for tenants seeking affordable housing. Investors should consider these factors alongside other local economic indicators and property management strategies to make informed decisions.
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.