Multi-Family Rentals Abound in Providence, RI

☕️ 4 min read By Noah Blumberg

Providence, Rhode Island is the city we're looking at today and it's an interesting one. Despite big price increases over the past year, it hasn't kept pace with many other cities in the U.S., including closeby Worcester, MA. So there's room to grow with prices remaining relatively low, but at the same time the rental market is very competitive. Of the 100 top real estate markets, Providence is 77th in a ranking of overpriced to underpriced. And it's considered the 6th hottest rental market in the country.

An Overview of the Providence Real Estate Market has a sunny outlook for prices in 2022 and for most of the country. They predict another 9.5% increase in real estate property prices. Aside from local interest in properties, out-of-state buyers who consider the area a getaway have been purchasing in Providence.

One concern about investing in Providence is the price-to-rent ratio. The typical annual rent in Providence is about 29% of home prices which is fairly high. This could indicate that a correction is imminent. However, despite this dynamic 97.4% of rentals are occupied and vacancy days are only 27 days on average. As an investor looking to make money from a property investment in the near future, you'll want to be careful about which property you choose.

The Properties

Cash-on-cash return will be part of our next list, but as you can see, we've added cap rate. Cap rate doesn't always correlate with score because our scores are for homebuyers, not just investors. However, they frequently overlap because, generally speaking, the more you get for your money (this is what our score measures), the more return you can get on the same property as an investment.

A good example of this is property #2. The estimated cap rate is very high and so is the score. There are 10 bedrooms and over 4700 square feet of living space, so there's lots of potential. Of course you'll need to know what you're getting into as the property is sold as-is and is currently occupied.

You may also notice that multi family properties abound at the top of our list. Another such property, in one of the most desirable zip codes, is property #6. It's a 3-unit building with some recent updates and some potential earning power with an estimated 12% cap rate.

Reading Resources

Here are the top 25 properties. To see them all or get a list for another city, order a custom list!
Median List PriceMedian SqftMedian Lot Size(SqFt)Median HOA Fee
Score**PropertyZipX**TypeCap Rate***SqFtLot Size(sqft)Price

14 Florence St
1.10multi familyN/A48502,178$270,000

132 Wendell St
1.10multi family13.5947684,016$399,900

29 Matson Ave Unit 18

150 Penn St
1.10multi family3.150393,920$499,000

29 Matson Ave Unit 403

16 Greeley St
1.14multi family12.6340283,484$365,000

901 Douglas Ave
1.12multi familyN/A801110,454$649,000

46 Priscilla Ave
1.10multi family12.0946712,428$375,000

152 Chatham St
1.14single family8.7348324,791$379,000

148 Laban St
1.10multi family2.7444465,000$320,000

25 Chatham St
1.14multi family7.2148324,791$459,000

305 Pocasset Ave
1.10multi family1.4762076,200$550,000

228 Lowell Ave
1.10single family10.7921767,840$155,000

39 41 Pinehurst Ave
1.12multi familyN/A48564,356$450,000

56 Felix St
1.12multi familyN/A43393,920$449,000

311 Plainfield St
1.10multi familyN/A35632,178$379,900

32 Edward St
1.14multi family5.832106,500$299,900

25 Hall St
1.14multi family9.0136047,840$499,000

104 Gesler St
1.10multi familyN/A43124,000$549,900

20 Madison St
1.11multi family6.262680N/A$290,000

22 Rosedale St
1.10single family8.9824542,178$275,000

184 Hamilton St
1.11multi family5.743334,500$503,000

10 Burleigh St Apt 11

15 Colfax St
1.15multi family1.5529313,049$420,000

52 Berkshire St
1.12multi family6.0732404,650$399,000
*This table shows only few basic data points. Rankings are based on 22 data points and 7 calculations per property.**Find explanations of ZipX aka zip multiplier and Score here.***Cap Rate is an estimation given typical inputs, not a guaranteed number.