Section 8 Fair Market Rent (FMR) for ZIP 02878 - 2027

Location: Newport-Middleton-Portsmouth, RI | Metro: Providence-Fall River, RI-MA HUD Metro FMR Area

Investment Score for ZIP 02878

F
Monthly Rent (2BR)
$2,090
Median Price (2BR)
$463,999
1% Rule
0.45%
Annual Yield
5.41%

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$1,580
1 Bedroom$1,590
2 Bedrooms$2,090
3 Bedrooms$2,820
4 Bedrooms$3,240
5 Bedrooms$3,758
6 Bedrooms$4,209
7 Bedrooms$4,546
8 Bedrooms$4,773

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 $1,590 $391,823 0.41% F
2BR $2,090 $463,999 0.45% F
3BR $2,820 $562,109 0.5% F
4BR $3,240 $770,951 0.42% F
5BR $3,758 $1,125,429 0.33% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
16,189
Median Household Income
$106,036
Housing Units
7,831
Renter Percentage
19.3%
Occupancy Rate
89.3%
Renter Occupied
1,352

19.3% of Tiverton, RI's residents are renters, indicating a moderate demand for rental properties in ZIP 02878. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1780, which represents the maximum allowable rent for Section 8 housing vouchers. In comparison, the Zillow Observed Rent Index (ZORI) stands at $2,450, highlighting a gap between the subsidized rent levels and the actual market rates. This discrepancy suggests opportunities for landlords who can offer units below market rates but still above the $1780 FMR threshold.

The median home value in Tiverton is $546,999, reflecting a relatively stable housing market. However, the median income of $106,036 indicates that a significant portion of the population might struggle to afford market-rate rents without assistance. The low 0.1% price-cut share suggests that property values have remained resilient, with few homes needing to be discounted to sell. This stability could be beneficial for long-term investments in the area.

Landlords in Tiverton can leverage these figures to make informed decisions about their rental pricing and eligibility for Section 8 programs. Given the $1780 FMR and the $2,450 market rent, there is a clear incentive to participate in Section 8, ensuring steady occupancy while still achieving reasonable returns. The moderate renter share and stable home values support this strategy, making Tiverton a viable option for those considering Section 8 participation.

Verdict: For landlords and small-portfolio investors in Tiverton, RI, participating in Section 8 with units priced between $1780 and $2,450 offers a secure investment opportunity with minimal risk of vacancy or price depreciation.

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.