Location: Providence-Fall River, RI | Metro: Providence-Fall River, RI-MA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,660 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,680 |
| 4 Bedrooms | $3,050 |
| 5 Bedrooms | $3,538 |
| 6 Bedrooms | $3,963 |
| 7 Bedrooms | $4,280 |
| 8 Bedrooms | $4,494 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 02915 (East Providence, RI) for Section 8, follow this decision tree:
1) Does FMR $1800 (zip FY 2024) clear debt service on a $437,766 property?
No. The Fair Market Rent (FMR) of $1800 does not sufficiently cover the debt service for a property priced at $437,766. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the price point and the FMR, the rental income would likely be insufficient to meet these obligations without additional subsidies or cost reductions.
2) Is market rent $1,894 (ZORI) above, at, or below FMR?
Below FMR. The Zillow Observed Rental Index (ZORI) indicates that the average market rent in ZIP 02915 is $1,894, which is slightly below the FMR of $1800. This suggests that market rents are competitive with Section 8 rates, potentially making it challenging to attract non-Section 8 tenants willing to pay the higher FMR rate.
3) Are 34.6% renters + N/A-day DOM enough demand?
It depends. With 34.6% of the population being renters, there is a significant portion of the market that could be interested in renting properties. However, the lack of data on Days on Market (DOM) makes it difficult to assess the speed at which properties are rented out. If the DOM is low, it indicates strong demand and a shorter vacancy period, which is favorable. Conversely, high DOM values suggest weak demand and longer vacancy periods, which could lead to financial strain.
Conclusion: If the debt service on a $437,766 property exceeds the FMR of $1800, it is not advisable to purchase for Section 8. Additionally, with market rents slightly below the FMR, attracting non-Section 8 tenants may be difficult. The percentage of renters indicates potential demand, but the absence of DOM data leaves uncertainty about how quickly a property can be leased. For a definitive recommendation, obtain the DOM data to better understand the rental market dynamics in ZIP 02915.
Data Sources: FMR data from HUD (2027). 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.