What's a good cap rate in Providence?

In Providence, cap rates typically run around 6.5% (Rhode Island state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Providence deal lands versus this benchmark.

What's the average rent for a rental in Providence?

A typical rental in Providence runs about $1,729–$2,087/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Rhode Island?

Rhode Island's effective property tax rate is about 1.40% of value per year — the figure TrueCap applies by default for Providence deals. You can override it with the exact local rate.

Providence, RI

Providence rental property analysis

Providence anchors Rhode Island with a deep college base (Brown, RISD, PC) and Boston-overflow demand at a meaningful discount to Boston.

Providence market snapshot

Balanced market

Mid-range cap rates — cash flow and appreciation are both realistically on the table.

Typical cap rate

6.5%

Rhode Island state median

Typical rent

$1,729–$2,087/mo

HUD FMR · 2–3BR · 2026

Typical price

$340,000–$440,000

est., all-in

Property tax

1.40%

Rhode Island effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Providence a good place to buy rentals?

Students plus priced-out Boston renters keep occupancy high. Rhode Island is tenant-friendly and stock is old — model regulation + capex; appreciation-leaning.

Neighborhoods to look at in Providence

East Side

Desirable, college demand, premium.

Federal Hill

Walkable, steady demand.

Elmhurst

Family renters, value.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Providence deal in 60 seconds

Paste a Providence address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Rhode Island tax and HUD rent so you start from the right assumptions.

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