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 | $1,380 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,530 |
| 5 Bedrooms | $2,935 |
| 6 Bedrooms | $3,287 |
| 7 Bedrooms | $3,550 |
| 8 Bedrooms | $3,728 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,820 | $410,905 | 0.44% | F |
| 3BR | $2,230 | $511,316 | 0.44% | F |
| 4BR | $2,530 | $616,787 | 0.41% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 02916, East Providence, RI, presents a nuanced scenario for both landlords and small-portfolio investors. The median home value stands at $489,761, reflecting a stable market. However, the absence of percentage data on listings that have been reduced and the median days on market (DOM) suggests a lack of recent volatility or rapid changes in listing activity.
This stability implies that there is a strong pricing power in the short term, with little indication of sellers needing to reduce their prices to attract buyers. Landlords can maintain their rental rates at or slightly above the current market average without significant risk of vacancy, given the Federal Market Rent (FMR) for ZIP 02916 in fiscal year 2024 is set at $1,520, while the actual market rate is estimated at $1,310 according to Census ACS data. This gap signals an opportunity for landlords to potentially increase rents closer to the FMR without alienating tenants.
For small-portfolio investors considering long-term holds, the setup suggests a cautious approach towards capital appreciation. While the current market conditions are favorable, with rental rates below the FMR, there is no definitive data indicating substantial growth in home values or rents over the next 12-24 months. Investors should focus on maintaining consistent cash flows through rental income rather than relying on significant property value increases.
Moreover, the slight discrepancy between the FMR and the market rate offers a strategic advantage for landlords who can adjust their rents incrementally over time. This adjustment should be made carefully, taking into account the local economy and employment trends, which can influence tenant affordability and demand.
In summary, the data points towards a market where landlords and investors can expect steady returns with minimal pressure to adjust their strategies significantly. Pricing power remains robust, and rental rates have room to grow closer to the FMR, providing a balanced outlook for the immediate future.
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.