Home Affordability in Providence, RI
The median home price in Providence is $340,000 with a median household income of $42,658. Housing is significantly stretched relative to local incomes.
Median Home Price
$340,000
Median Income
$42,658
Price-to-Income Ratio
8.0x
Est. Affordable Home
$166,000
Property Tax Rate
2.47%
Annual Property Tax
$8,398
Sales Tax Rate
7.00%
Cost of Living Index
104
Buying a Home in Providence
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $42,658 in Providence can afford a monthly housing payment of approximately $995. This translates to a home price of roughly $166,000, which is below the median home price of $340,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in Providence would be approximately $8,398 per year ($700/month) at the effective rate of 2.47%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $10,200 | $329,800 | Yes |
| 5% | $17,000 | $323,000 | Yes |
| 10% | $34,000 | $306,000 | Yes |
| 20% | $68,000 | $272,000 | No |
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