Section 8 Fair Market Rent (FMR) for ZIP 02860 - 2027

Investment Score for ZIP 02860

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,300
1 Bedroom	$1,380
2 Bedrooms	$1,720
3 Bedrooms	$2,110
4 Bedrooms	$2,390
5 Bedrooms	$2,772
6 Bedrooms	$3,105
7 Bedrooms	$3,353
8 Bedrooms	$3,521

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,380	$271,741	0.51%	F
2BR	$1,720	$339,083	0.51%	F
3BR	$2,110	$406,328	0.52%	F
4BR	$2,390	$444,967	0.54%	F
5BR	$2,772	$546,036	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 02860 (Pawtucket, RI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 02860 (Pawtucket, RI) in 2026 indicate that a two-bedroom unit should rent for $1610 per month. However, the actual rental market is significantly higher. The Zillow median price for a two-bedroom home is $327,819, which translates into a monthly mortgage payment that is far above the FMR. Given the high price-to-FMR ratio of 17.0x, it is clear that the actual rents in Pawtucket are much higher than what is considered fair market rent. This means that tenants using Section 8 vouchers face significant constraints, as they will struggle to find units within their budget. For instance, a tenant with a voucher for a two-bedroom unit would only be able to cover $1610 out of a potential monthly mortgage payment that could be as high as $27,370 based on the Zillow median price. #### Affordability & Renter Profile With a median household income of $61,539, Pawtucket is a moderately priced area. However, the high rent-to-income ratio, especially for larger units, makes it challenging for many residents to afford housing. The fact that 59.2% of the population are renters suggests a strong demand for rental properties. The occupancy rate of 92.4% indicates that there is little vacancy in the market, making it a tight rental market. Given the high rent-to-income ratio, particularly for a two-bedroom unit which represents 31.4% of the median income, it is evident that many residents are likely to be low-income families who rely heavily on government assistance like Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 02860 offers a mixed picture. While the rental market is robust and there is a high demand for units, the actual rents are well above the FMR. This means that if an investor is focusing solely on Section 8 vouchers, they might struggle to find enough tenants willing to pay the FMR. However, if the investor can attract non-voucher tenants, the high actual rents could make the investment cash-flow positive. For example, a two-bedroom unit renting at $1610 per month would need to be priced significantly lower than the Zillow median to be affordable. In terms of investment grade, the high price-to-FMR ratio suggests that the market is overpriced relative to what is considered fair rent. This could mean that investors might face challenges in finding properties that offer a good return on investment when considering the FMR. However, given the strong rental demand and high occupancy rates, investors might still find opportunities if they can secure tenants paying market rates rather than relying solely on FMR. #### Specific Actionable Insights 1. **Focus on Non-Voucher Tenants**: Given the high price-to-FMR ratio, investors should focus on attracting tenants who are willing to pay market rates. A two-bedroom unit renting at $1610 might struggle to fill vacancies, but if the unit can be rented at closer to the Zillow median price, it would likely be cash-flow positive. 2. **Consider Smaller Units**: The FMR for smaller units (0BR and 1BR) is lower, at $1230 and $1310 respectively. These units are more likely to be filled by Section 8 voucher holders since the rent is closer to their budget. Investors might consider developing or purchasing smaller units to cater to this segment of the market. 3. **Explore Government Programs**: Investors should explore other government programs that provide subsidies or incentives for affordable housing. While the FMR might be a limiting factor, other programs could help bridge the gap between the actual rents and what voucher holders can afford. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 02860 would be to **Skip**. The high price-to-FMR ratio and the tight rental market suggest that it would be difficult to find enough tenants willing to pay the FMR. Instead, investors might want to look for areas where the price-to-FMR ratio is lower, or consider investing in smaller units where the FMR is closer to the actual market rent. If an investor is willing to explore non-voucher tenants and is comfortable with higher rents, then the market could be **Hold** or even **Buy**, depending on their risk tolerance and ability to manage market-rate properties. However, given the specific constraints posed by the FMR and the high actual rents, the overall recommendation leans towards **Skip** unless the investor has a strategy to mitigate these risks.

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.