Location: Providence-Fall River, RI | Metro: Providence-Fall River, RI-MA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,500 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
The Section 8 housing market in ZIP code 02877, located within the Providence-Fall River County, Providence-Fall River, RI-MA HUD Metro FMR Area, presents a unique set of challenges and opportunities for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1890 per month for fiscal year 2024. However, the market rent for the area is currently unavailable, which makes it difficult to provide a direct comparison between the two figures.
To determine whether voucher tenants will cashflow at the FMR rate, marginally, or only with premium units, we need to consider the local rental market conditions. Given that the market rent is not available, we can infer that the rental market in ZIP 02877 is either underdeveloped or lacks sufficient data points to establish a reliable average. This situation suggests that voucher tenants may only cashflow with premium units, assuming that the actual market rents exceed the FMR rate.
The median home value in ZIP 02877 is also currently unavailable, which means we cannot calculate an exact rent-to-price ratio. Nevertheless, the lack of data on home values implies that the area might be predominantly rental-focused, which could affect the overall investment strategy. If the local real estate market is primarily rental-driven, then cashflow becomes a more critical factor than appreciation or stability.
Regarding the days on market (DOM) and the percentage of price cuts, both pieces of information are currently unavailable. These metrics would typically help investors understand how quickly properties sell and the extent to which sellers may have to reduce their asking prices. In the absence of these data points, we must rely on other indicators to gauge the health of the local real estate market.
The strongest angle for investors in ZIP 02877 is likely to be cashflow. Despite the uncertainty surrounding market rents and home values, the predictability of HUD FMR payments provides a stable income source for landlords. Investors should focus on acquiring high-quality units that can command rents above the FMR, ensuring positive cashflow while serving the needs of voucher tenants. This approach leverages the guaranteed nature of Section 8 payments while positioning properties to benefit from any upward trends in the local rental market.
Data Sources: FMR data from HUD (2027).
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.