3 Rhode Island cities ranked by estimated cap rate. The average cap rate across Rhode Island markets is 2.5%, with median home prices averaging $505K and rents averaging $2,090/mo. Warwick leads with a 2.5% cap rate at a $505K median price. Property taxes average 1.42% across Rhode Island markets.
Rhode Island offers 3 investable rental markets tracked by CapRateCity. The state average cap rate of 2.5% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Rhode Island home prices average $505K, which is 51% above the national average of $333K. Rents average $2,090/mo.
Taxes and costs: Property taxes average 1.42% across Rhode Island, above the 1.08% national average — investors should model tax expense carefully. Warwick has the lowest rate at 1.4%.Vacancy averages 5.1%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across Rhode Island averages 0.17% per year, led by Providence at 0.2%. Home values are appreciating at 2.7% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Rhode Island is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.