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 | $1,500 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,590 | $454,477 | 0.35% | F |
| 2BR | $1,980 | $666,714 | 0.3% | F |
| 3BR | $2,430 | $730,895 | 0.33% | F |
| 4BR | $2,760 | $911,219 | 0.3% | F |
| 5BR | $3,202 | $1,121,158 | 0.29% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 housing in ZIP code 02879, located in South Kingstown, Rhode Island, comes with several inherent risks that landlords must consider before proceeding. One significant issue is tenant turnover. The market rent for properties in this area stands at $2,677, whereas the Fair Market Rent (FMR) for FY 2024 is set at $2,000. This discrepancy can lead to frequent changes in occupancy as tenants who qualify for Section 8 vouchers might struggle to meet the higher market rents.
Vacancy exposure is another concern. While the days on market (DOM) for properties in this area is not available, it's crucial to understand that even in areas with high demand, there can be periods where properties remain vacant. This uncertainty can affect cash flow and overall profitability.
The risk of deferred maintenance is also notable. With a typical home value of $722,053 and a median income of $112,231, many property owners may delay necessary repairs due to financial constraints. This can result in higher maintenance costs down the line and potentially impact the quality of the rental units.
However, these risks are balanced by the high concentration of renters in the area. The renter share in ZIP 02879 is 21.9%, indicating a robust demand for rental properties. This high density of renters often translates into a greater number of Section 8 voucher holders seeking housing, which can provide a steady stream of tenants willing to pay the subsidized rent.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.