Weighted vacancy improved
2025 Q34.5%
2026 Q3 QTD4.2%
About 37 basis points lower on the same 12-submarket weighted basis.
Rhode Island only · Investment intelligence · Issue 03 / 2026Rhode Island Multifamily
Spectrum advisory ↗RI / MF / 2026–03
Rhode Island multifamily, read deal by deal.
A practical Rhode Island decision brief for investors evaluating apartment assets and 2–4-family opportunities. Start with the submarket, the asset, and the basis—not a broad headline.
Current market postureSELECTIVE
Defensive
SelectiveCurrent
Aggressive
Statewide balance is constructive. Supply concentration and the asking-price gap make property-level evidence the deciding factor.
- Demand / delivery
- 475 / 472 units
- Apartment ask premium
- ~39% vs. closed median
01 / Vacancy4.2%weighted · 12 submarkets
02 / Asking rent$2,067weighted per unit
03 / Rent growth3.0%weighted · 12 months
04 / Pipeline824units under construction
Decision first
Is this market investable right now?
Yes—selectively. Rhode Island’s statewide balance is constructive, but the answer changes with leverage, hold period, asset condition, return target, and the pipeline surrounding the property.
Across 12 Rhode Island submarkets, weighted Q3-to-date vacancy is 4.2% on 41,266 units. Asking rent averages $2,067 per unit, with 3.0% weighted 12-month growth.
Over the last year, about 475 units were absorbed against roughly 472 delivered. That balance supports a selective investment thesis—not a blanket buy signal.
Investor translation
Investable for the right strategy and basis.Property-level income, expenses, debt, insurance, condition, and legal-unit evidence still control the decision.
Year-over-year comparison
What changed since the last update?
To show the year-over-year direction, this section compares Q3 2025 with Q3 2026 quarter to date. The current-quarter figures are still developing.
Weighted asking rent moved higher
2025 Q3$2,018
2026 Q3 QTD$2,067
A 2.4% increase in the weighted asking-rent level.
Submarket intelligence
Where are demand, rent growth, and occupancy strongest?
Warwick / West Warwick led 12-month absorption at +301 units with 3.3% vacancy. Kent County paired 2.4% vacancy with 7.0% rent growth; Washington County remained tight at 2.2% vacancy.
| Submarket | Vacancy | Ask / unit | Rent growth | 12-mo absorption | Under construction |
|---|---|---|---|---|---|
| Washington County | 2.2% | $2,549 | 2.9% | +77 | 0 |
| Kent County | 2.4% | $2,342 | 7.0% | +2 | 0 |
| Newport | 2.6% | $2,054 | 2.3% | -1 | 0 |
| Southeastern Providence County | 2.9% | $1,845 | 3.1% | +17 | 142 |
| East Bay | 3.1% | $2,139 | 1.5% | +15 | 127 |
| Warwick/West Warwick | 3.3% | $1,967 | 3.6% | +301 | 20 |
| Outlying Newport County | 3.6% | $1,999 | 1.1% | -5 | 0 |
| Outlying Providence County | 3.7% | $2,311 | 3.6% | -20 | 0 |
| East Side | 4.1% | $2,212 | 4.7% | +18 | 14 |
| Northeastern Providence County | 4.3% | $1,830 | 2.2% | +7 | 440 |
| Downcity | 6.4% | $2,400 | 2.5% | +18 | 0 |
| Middletown | 9.5% | $2,288 | 6.5% | +46 | 81 |
Supply watch
Where is new supply creating risk?
Construction is concentrated. Northeastern Providence County, Southeastern Providence County, East Bay, and Middletown hold 790 of the 824 units underway.
Northeastern Providence County440 units
Southeastern Providence County142 units
East Bay127 units
Middletown81 units
Warwick/West Warwick20 units
East Side14 units
Middletown combines 81 units underway with 9.5% current vacancy. Downcity has no units under construction in this snapshot, but its 6.4% vacancy still makes lease-up and current concessions important.
Capital markets
What are properties actually trading for?
The report includes 142 closed Rhode Island apartment sales from Aug. 1, 2025 through Jul. 31, 2026. Price-per-unit data was available for 124.
Apartment sales
- Closed records142
- Recorded volume$501.4M
- Median price / unit$158K
- Median reported cap7.1% · 45 records
Royal Crest Warwick
- Sale price$132M
- Units492
- Price / unit$268K
- Reported cap6.43%
Volume is top-heavy
- Units in priced records2,121
- Latest sale in reportJul. 14, 2026
- Property mixNot uniform
- UseDirectional first
Recorded sales volume reflects the transactions included in this report and should not be read as a complete statewide total.
Pricing read
How far apart are buyer pricing and seller expectations?
Active Rhode Island apartment listings show a $221K median asking price per unit—about 39% above the $158K median in the closed-sale set. That is a directional gap, not a like-for-like bid/ask spread.
Completed apartment sales
- Records142
- Median price / unit$158K
- Median reported cap7.1%
- StatusClosed evidence
Apartment listings
- Active listings53
- Median ask$1.70M
- Median ask / unit$221K
- Median days on market13
Apartment listings
- Records8
- Median ask$1.02M
- Median ask / unit$161K
- Price labelAsking, not closing
Closed and active sets differ in size, quality, and composition; property-level comparables are required before assigning value.
Where to focus
Which submarkets or asset classes look most compelling?
The strongest screens combine demand, low vacancy, rent performance, and manageable pipeline exposure. They are starting points for diligence—not automatic acquisition recommendations.
Warwick / West Warwick
The clearest absorption leader, with +301 units over 12 months, 3.3% vacancy, and only 20 units under construction.
Kent County
2.4% vacancy and 7.0% rent growth stand out. Confirm property-level rents and whether recent gains are repeatable.
East Side
4.7% rent growth, 4.1% vacancy, and just 14 units underway support a closer look at well-bought assets.
The report also includes 321 active Rhode Island 2–4-family listings: 188 two-family, 91 three-family, and 42 four-family. Their $700K median asking price and $292K median asking price per unit are active-listing signals, not closed-sale evidence.
Underwriting discipline
What should I underwrite conservatively?
Use current property evidence before market averages. Stress the assumptions most likely to turn a promising acquisition into a weak hold.
1
Revenue
Current rent roll, concessions, bad debt, turnover, and realistic loss-to-lease.
2
Debt and coverage
Interest rate, amortization, refinance exposure, reserves, and debt-service coverage.
3
Insurance and taxes
Use current quotes and local assessments rather than broad operating ratios.
4
Physical plan
Deferred maintenance, code issues, unit legality, capital needs, and realistic timing.
5
Pipeline exposure
Nearby deliveries, concessions, lease-up velocity, and competitive product quality.
6
Exit sensitivity
Test cap-rate expansion, selling costs, hold period, and a slower rent-growth case.
Underwriting Lab · Five investor calculators
Pressure-test the deal with your figures.
Every result comes from visible, editable inputs. Market metrics are not inserted into your calculation.
Swipe the tool rail for all five calculators →
Your result
Annual NOI ÷ property value
Your result
Annual pre-tax cash flow ÷ total cash invested
Your result
Average annual profit ÷ initial investment; simple average, not IRR
Your result
Effective monthly income − expenses − debt service − reserves
Your result
Sale price − payoff − visitor-entered selling costs
Educational estimates only. Verify property-specific financing, tax, legal, accounting, insurance, brokerage, and closing figures with qualified professionals.
Current opportunity
Is there an opportunity I can review now?
No current property presented in this issue
Bring the address or your buy box.
Spectrum can check current status, the relevant submarket, comparable sales, active competition, and the property evidence still needed for a defensible recommendation.
Question 10 · Spectrum as your guide
How can Spectrum help you evaluate, acquire, hold, or sell an asset?
Start with the property, your strategy, and your hold period. You’ll get a focused Rhode Island read on the submarket, pricing evidence, active competition, underwriting gaps, and your clearest next step.
Start a property review