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 | $1,400 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,850 | $379,137 | 0.49% | F |
| 3BR | $2,270 | $417,031 | 0.54% | F |
| 4BR | $2,570 | $458,033 | 0.56% | F |
| 5BR | $2,981 | $521,180 | 0.57% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 02908, Providence, RI, is poised for stability and cautious optimism over the next 12 to 24 months. The median home value currently stands at $411,809, indicating a solid base price that reflects the area's desirability and economic health. A notable trend is that only 0.3% of listings have been reduced, which suggests strong seller pricing power. This low reduction rate signals confidence among sellers and a competitive market where buyers are willing to meet or slightly exceed asking prices.
The median days on market (DOM) being listed as 'N/A' suggests that homes are selling quickly, often before reaching a typical DOM measurement. Rapid sales are indicative of high demand relative to supply, further reinforcing the notion of strong pricing power. Landlords and small-portfolio investors should expect to see steady prices rather than significant drops, as the market dynamics favor sellers.
On the rental side, the Federal Market Rent (FMR) for ZIP 02908 in fiscal year 2024 is set at $1,690. This figure represents the government benchmark for rental rates, particularly relevant for Section 8 properties. However, the actual market rent, as indicated by Zillow's Observed Rent Index (ZORI), is significantly higher at $2,243. This discrepancy highlights a potential opportunity for landlords who can leverage the higher market rents while maintaining compliance with Section 8 guidelines.
For long-term investors, the setup points towards a realistic appreciation thesis. Given the strong seller pricing power and rapid sales, there is an underlying foundation for property values to appreciate modestly. The gap between FMR and ZORI also supports the idea that rental income can provide a buffer against market volatility and contribute to overall portfolio growth. However, it is important to note that appreciation will likely be gradual and influenced by broader economic factors such as employment rates, interest rates, and migration patterns into Providence.
In summary, the current market conditions in ZIP 02908 imply a scenario where pricing power remains strong, driven by a low reduction rate and quick sales. Rental dynamics present a favorable environment for landlords, with the potential to earn above FMR levels. Long-term investors can anticipate modest appreciation, backed by the robust local economy and housing demand.
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.