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 | $595,497 | 0.33% | F |
| 3BR | $2,410 | $777,622 | 0.31% | F |
| 4BR | $2,740 | $1,079,128 | 0.25% | F |
| 5BR | $3,178 | $1,503,720 | 0.21% | F |
U.S. Census Bureau data (2024)
The ZIP code 02874, located in North Kingstown, RI, falls under the Washington County and the larger Providence-Fall River, RI-MA HUD Metro FMR Area. For fiscal year 2024, the HUD Fair Market Rent (FMR) for ZIP 02874 is set at $1970 per month for a standard unit. In contrast, the Census American Community Survey (ACS) reports the average market rent for the area at $1,774 per month.
This comparison indicates that voucher tenants would typically generate positive cash flow for landlords when renting at the HUD FMR rate. The difference between the HUD FMR and the market rent is $196 per month, which suggests that landlords can expect to see a significant monthly surplus when using Section 8 vouchers. This positive cash flow is likely to occur even with standard units, not necessarily requiring premium accommodations to achieve profitability.
The median home value in ZIP 02874 is $872,926, providing a useful reference point for understanding the local housing market. To derive the rent-to-price ratio, we use the HUD FMR of $1970, which translates to an annual rent of approximately $23,640. Dividing the annual rent by the median home value yields a rent-to-price ratio of about 2.7%. This ratio suggests that rental income is relatively low compared to property values, indicating that the area may be more attractive for homeownership rather than investment in rental properties.
However, given the data, the strongest investor angle in ZIP 02874 is cash flow. Landlords can expect to see a reliable and substantial monthly income surplus from voucher tenants, making it a solid choice for those seeking steady returns on their rental investments. The current market conditions support this conclusion, as the HUD FMR significantly exceeds the average market rent, ensuring a comfortable profit margin for landlords participating in the Section 8 program.
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.