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 |
|---|---|---|---|---|
| 2BR | $1,810 | $383,295 | 0.47% | F |
| 3BR | $2,220 | $421,211 | 0.53% | F |
| 4BR | $2,520 | $441,644 | 0.57% | F |
| 5BR | $2,923 | $562,271 | 0.52% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 02905 in Providence, RI, reveals a significant gap between the federal market rent (FMR) and the actual market rent (ZORI). The annualized FMR for a 2-bedroom apartment in FY 2024 is $1720, while the ZORI stands at $1,952.
To calculate the gross yield, we divide the annual rental income by the median home value of $418,328. For the FMR scenario, the gross yield is approximately 4.11% ($1720 / $418,328 * 100). In contrast, the ZORI yields a gross return of about 4.67% ($1,952 / $418,328 * 100).
The higher gross yield from ZORI reflects a more favorable return for investors compared to the FMR. However, considering the 50.3% renter density, it's important to recognize that a significant portion of the population in this area may be seeking subsidized housing options. This makes the FMR scenario more likely for properties participating in the Section 8 program.
The N/A-day DOM (days on market) indicates that there is no specific data available regarding how long homes typically stay on the market, which can affect vacancy rates and thus the overall cap rate. Despite this, the lower gross yield from the FMR is the more realistic expectation for landlords and small-portfolio investors looking to participate in the Section 8 program in ZIP 02905.
In summary, while the ZORI suggests a better gross yield, the reality of the Section 8 program in this area means investors should anticipate a gross yield closer to 4.11%, based on the FMR of $1720 for a 2-bedroom unit. This is essential for setting accurate expectations and planning investment strategies.
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.