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 | $1,510 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $288,645 | 0.55% | F |
| 2BR | $1,990 | $367,620 | 0.54% | F |
| 3BR | $2,440 | $434,651 | 0.56% | F |
| 4BR | $2,770 | $484,098 | 0.57% | F |
| 5BR | $3,213 | $581,670 | 0.55% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 02889 (Warwick, RI) does not work in favor of landlords. The Fair Market Rent (FMR) set at $1840 for fiscal year 2024 is significantly higher than the actual market rent reported by the Census ACS, which stands at $1,326. This discrepancy suggests that landlords might struggle to find tenants willing to pay the FMR, as the local rental market is priced lower.
Acquisition of properties in this area is relatively affordable. With a median home value of $406,167, potential investors can enter the market without requiring substantial capital. Additionally, the average days on market (DOM) of 12 days indicates a quick turnover rate, suggesting that homes are attractive to buyers and sell quickly. The low percentage of homes experiencing price cuts—only 0.2%—further supports the idea that the market is stable and homes are valued appropriately.
Tenant demand in ZIP 02889 is moderate. The total population is 27,516, and 20.9% of these residents are renters. While the renter share is not exceptionally high, it still represents a significant portion of the population, indicating a steady pool of potential tenants. However, landlords must be prepared to compete with the existing rental market rates to attract and retain tenants.
In conclusion, while the acquisition of properties in ZIP 02889 is financially feasible, the disparity between the FMR and the actual market rent presents a challenge for landlords. Despite the moderate tenant demand, landlords should align their rental pricing with market expectations to ensure occupancy. The stable property values and quick sales suggest that the real estate market is robust, but the focus should be on realistic rental income rather than the HUD's FMR figures.
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.