Location: Westerly-Hopkinton-New Shoreham, 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 | $1,430 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,350 | $506,145 | 0.46% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 02894 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1800 for fiscal year 2024. This SAFMR specifically applies to this ZIP code, meaning it's tailored to reflect the rental market conditions here.
Section 8 operates under a formula where the government subsidizes a portion of the rent based on the SAFMR, while the tenant is responsible for paying approximately 30% of their income towards rent. For landlords, understanding exactly what they will receive from the voucher program requires breaking down the components of the total rent.
The voucher payment is calculated as follows:
Given the SAFMR of $1800, if the local market rent were higher, landlords would face a reimbursement gap. However, since the local market rent is currently listed as N/A, it's unclear whether landlords will receive less than the market rate or if there's an exact match with the SAFMR. If the market rent is lower than $1800, landlords might see a surplus in their reimbursements.
To illustrate, if the local market rent for a 2BR is below $1800, say $1700, and the tenant contributes $600, the voucher would cover the remaining $1100, resulting in a surplus of $100 for the landlord. Conversely, if the market rent is above $1800, landlords would need to adjust their expectations accordingly, as they won't receive more than the SAFMR from the voucher program.
In summary, landlords in ZIP 02894 should expect a voucher reimbursement of up to $1800 for a two-bedroom unit, with the tenant contributing about 30% of their income towards rent. The presence of utility allowances can also help manage expenses, though their impact is secondary to the primary rent calculation. The final outcome—whether it's a reimbursement gap or surplus—depends on the actual local market rents compared to the SAFMR.
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.