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 | $1,370 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,450 | $217,325 | 0.67% | D |
| 2BR | $1,810 | $355,521 | 0.51% | F |
| 3BR | $2,220 | $431,076 | 0.51% | F |
| 4BR | $2,520 | $465,818 | 0.54% | F |
| 5BR | $2,923 | $487,034 | 0.6% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP 02893, West Warwick, RI, presents a nuanced picture for both landlords and small-portfolio investors. The median home value stands at $397,248, indicating a stable housing market. With only 0.1% of listings being reduced, it suggests that sellers are maintaining their asking prices, reflecting a strong sense of pricing power among them. This is further supported by the short median days on market (DOM) of just 11 days, implying that homes are selling quickly, often before reaching the stage where price reductions become necessary.
The rapid sale cycle and minimal reduction rates suggest that the demand for properties in West Warwick is robust, which could translate into continued pricing strength over the next 12-24 months. However, for long-term hold investors, the appreciation thesis must be considered carefully. The Federal Market Rent (FMR) for ZIP 02893 in fiscal year 2024 is projected at $1,690, while the current Zillow Observed Rental Index (ZORI) stands at $1,724. This slight discrepancy between the FMR and the actual market rents indicates that rental prices are currently above the federal benchmark, but there is little room for significant growth in the near term.
The setup the data implies is one where landlords can expect steady rental income without substantial increases in rent rates. For small-portfolio investors, this means that capital appreciation through property value increases will likely be the primary driver of returns, rather than rental income growth. Given the current market conditions, the appreciation thesis is grounded in the stability of the housing market and the quick turnover of properties, suggesting that values will remain firm but not experience explosive growth.
In summary, the combination of high median home values, low listing reductions, and short DOM periods points to a market where sellers have the upper hand. For those holding properties for the long term, the expectation should be for consistent, albeit modest, appreciation in property values, alongside stable rental incomes. These factors create an environment conducive to maintaining investment value and generating predictable cash flows.
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.