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 | $1,380 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,530 |
| 5 Bedrooms | $2,935 |
| 6 Bedrooms | $3,287 |
| 7 Bedrooms | $3,550 |
| 8 Bedrooms | $3,728 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,460 | $252,080 | 0.58% | F |
| 2BR | $1,820 | $434,411 | 0.42% | F |
| 3BR | $2,230 | $522,906 | 0.43% | F |
| 4BR | $2,530 | $735,609 | 0.34% | F |
| 5BR | $2,935 | $735,538 | 0.4% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Cumberland, RI (ZIP 02864), might have several concerns regarding the feasibility of renting out a property under the Section 8 program. Let's address these objections directly using available data.
Will FMR $1600 (zip FY 2024) cover the mortgage on a $513,654 home?
The Fair Market Rent (FMR) for ZIP 02864 is set at $1600 per month for FY 2024. To determine if this amount can cover the mortgage on a home valued at $513,654, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an interest rate of 5%, the monthly principal and interest payment would be approximately $2,690. This means that the $1600 FMR does not fully cover the mortgage payment. However, it's important to note that the FMR only covers the rental component and does not include other costs such as property taxes, insurance, or maintenance. Landlords must consider these additional expenses when evaluating their financial situation.
Is there enough renter demand at 23.7%?
The percentage of renter-occupied housing units in Cumberland, RI, stands at 23.7%. While this figure suggests a moderate level of demand, it is crucial to understand that this statistic alone does not provide a complete picture. The actual number of renters in the area, combined with the local unemployment rate and job market stability, would give a clearer indication of the potential for consistent rental income. Additionally, the presence of nearby universities, military bases, or large employers can significantly influence the demand for rental properties.
Will vouchers keep pace with $2,204 market rents?
The average market rent in Cumberland, RI, is $2,204 per month. Given that the FMR is lower at $1600, there is a significant gap between what landlords could potentially charge and what the voucher program will cover. This discrepancy can be challenging for landlords who are looking to break even or make a profit. However, the Section 8 program is designed to adjust its payment standards periodically to reflect changes in the local housing market. It is advisable for landlords to monitor these adjustments closely and consider the long-term stability they offer compared to the volatility of the private rental market.
The data provides a snapshot of the financial landscape in Cumberland, RI, but it is essential to conduct further research into local economic trends, housing supply, and demand dynamics to make a well-informed investment decision. While there are challenges, particularly with covering mortgage payments and keeping up with market rents, the stability offered by the Section 8 program can be a valuable asset for landlords and small-portfolio investors.
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.