DSCR Loans in Rhode Island
Last updated: May 2026
Rhode Island is the smallest state but punches above its weight for DSCR investors, with Providence offering an undervalued urban rental market just an hour from Boston. The state's concentration of colleges and universities -- including Brown, RISD, URI, and Providence College -- creates steady academic-year rental demand. Coastal properties can generate strong seasonal income, though investors should plan for year-round cash flow carefully.
Property Tax
1.40%
State Income Tax
3.75% - 5.99%
Landlord Friendly
Moderate
Eviction Timeline
2 - 4 months
Property Taxes in Rhode Island
Rhode Island property taxes vary significantly by municipality. Providence carries an effective rate of about 2.20%, while Cranston averages roughly 1.88%. Warwick sits near 1.55%, and coastal communities like Narragansett tend to hover around 1.0% due to higher assessed values on waterfront properties.
Insurance Costs
Typical investment property insurance in Rhode Island runs $1,400 - $2,100/yr. As a coastal state, Rhode Island faces meaningful hurricane and flood risk along its entire southern shoreline and Narragansett Bay. Properties in designated flood zones near Newport, Warwick, and the coastal villages require separate flood policies that can add $2,000 or more annually.
Landlord-Tenant Laws
Rhode Island does not have statewide rent control and is generally considered moderate in its tenant-landlord balance. Evictions for nonpayment require a five-day demand notice followed by a court filing, with the full process typically taking two to four months. Security deposits are capped at one month's rent, and landlords cannot charge last month's rent at move-in.
Top Investment Markets in Rhode Island
Providence
Eds-and-meds economy with Brown, RISD, and multiple hospitals anchoring demand, plus a revitalized arts and dining scene.
Pawtucket
Directly adjacent to Providence with lower acquisition costs and a growing creative economy centered around converted mill buildings.
Cranston
Suburban feel with urban convenience, strong school districts, and steady demand from families priced out of East Side Providence.
Woonsocket
Most affordable market in the state with median prices under $250K and a solid blue-collar tenant base.
DSCR Considerations in Rhode Island
Providence and Pawtucket are the sweet spots for DSCR investing in Rhode Island, offering rents strong enough to support standard leverage on affordable properties. Investors should note that Rhode Island recently passed a law requiring landlords to accept Section 8 vouchers, which affects tenant screening practices. Seasonal short-term rental income near Newport and the beaches can boost DSCR ratios, but lenders may apply significant haircuts to projected STR revenue.
Run the numbers for Rhode Island
Use our free DSCR calculator to see if your Rhode Island investment property pencils out.
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