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 | $1,340 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,420 | $310,591 | 0.46% | F |
| 2BR | $1,770 | $372,658 | 0.47% | F |
| 3BR | $2,170 | $412,545 | 0.53% | F |
| 4BR | $2,460 | $435,446 | 0.56% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 02861 (Pawtucket, RI) for Section 8 investment, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1,560 cover the debt service on a property valued at $395,601?
No. The FMR of $1,560 is insufficient to cover typical debt service costs on a property of that value. Debt service on a $395,601 property would likely exceed this amount, making it financially unviable to rely solely on Section 8 income for this level of investment.
Yes. If the landlord can secure a property with a lower value where the FMR of $1,560 does cover the debt service, proceed to the next step.
Step 2: Is the market rent ($1,848 ZORI) above, at, or below the FMR?
Above. The ZORI (Zillow's estimate of the median rental price) of $1,848 is higher than the FMR of $1,560. This indicates that market rents are higher than what Section 8 will pay, which could be beneficial if the landlord plans to occasionally lease to non-Section 8 tenants.
At or Below. If the market rent were at or below the FMR, the landlord would have limited upside potential outside of Section 8 tenancy.
Step 3: Do the demographics support sufficient demand? Consider 33.3% renters and the days on market (DOM).
It Depends. With 33.3% of residents being renters, there is moderate demand. However, the lack of data on the average days on market (DOM) makes it challenging to assess how quickly properties are typically leased. A high DOM might indicate slower turnover, which could be risky for an investment relying on steady rental income.
If the landlord can find a property where the FMR covers the debt service and the market rent is significantly above the FMR, the investment could be viable despite the moderate demand. However, if the debt service cannot be covered by the FMR, the landlord should consider other ZIP codes or adjust their investment strategy to include properties with lower values.
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.