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By Robin Simon, President, Harpoon Capital · About · LinkedIn · Author, The Book on DSCR Loans (Available on Amazon)
Rhode Island packs a capital city, three mainland suburbs, a university-and-beach town and an island resort into the smallest state in the country, and five of its six markets below score 78 or higher on Redfin's “Compete Scores.” Home prices run from about $449,000 in Warwick to about $737,000 in South Kingstown (Redfin, 2026), with Block Island selling in the seven figures, and the “rent-to-price ratio” in Providence is a thin 0.31% a month on BiggerPockets, which means most Providence purchases will land below 1.00x on a DSCR loan, so the underwriting matters. Investors buying here typically finance with Rhode Island DSCR loans, which are qualified primarily based on the property rather than the borrower's personal income.
This breakdown uses market data collected as of October 2026, the most current snapshot available heading into next year's buying season. If you're evaluating a purchase in the final months of 2026, keep in mind that your first full year of rental income, appreciation, or short-term rental revenue lands in 2027 regardless of when you close. A deal you underwrite today is already a 2027 investing decision, just one made with the freshest data available right now.
Rhode Island requires every short-term rental of 30 nights or fewer to register with the state Department of Business Regulation, according to BNBCalc's Providence guide, and the local rules sit on top: Providence allows short-term rentals where the zone doesn't require owner occupancy, Warwick has run a dedicated ordinance with a $250 city permit since February 2023 (BNBCalc), and Red Awning reports that New Shoreham may limit rentals in some areas or require a permit for non-owner-occupied homes.
One pattern shows up in Redfin's search data, which tracks home searches rather than actual moves: New York buyers are the top inbound source for the Providence area, while Rhode Island buyers most often search Portland, Maine and Florida, and the spread in the Compete Scores is very wide, from 87 in Pawtucket (“very competitive”) to 5 on Block Island (“not very competitive”).
Below, we break down six Rhode Island markets worth watching, using current data from Redfin, BiggerPockets, and AirDNA.
Note: BiggerPockets figures are included for Providence only (the Providence–Warwick, RI–MA metro, whose $422,500 median sits well below Redfin's $581,365 for the city), and AirDNA figures are not included for Cranston or South Kingstown, so those sections rely on Redfin alone. Pawtucket's AirDNA figures show listings up 62% and a rate up 29.7%, and its top listings are named for the World Cup, so they may include one-time event demand. Redfin's search-data tables repeat across the Providence area and across Cranston, South Kingstown, Warwick and New Shoreham, so they're treated as regional, and Block Island's median sale price is left out because Redfin recorded only five sales in August.
Bidding wars and a thin rent ratio
Providence is the state capital and home to Brown University and the Rhode Island Hospital, and it has the deepest short-term rental field on the list, with a rent-to-price ratio that makes long-term cash flow difficult.
BiggerPockets points to healthcare, education and finance, with Brown University and the Rhode Island Hospital among the major employers, and Redfin search data shows New York buyers looking at the Providence area more than any other metro (a net 933), ahead of Washington (192) and Los Angeles (117), while local buyers most often search Portland, Maine (1,434) and Miami (911). However, the median price per square foot is down 7.6% even as the median price rises, i.e. the sales mix is shifting toward larger homes, and First Street data on Redfin rates the hurricane-wind risk as “major” (99% of properties). On the STR side, BNBCalc reports that Providence allows short-term rentals where the owner lives on site and hosts a room or where the zone doesn't require owner occupancy, and that a recent zoning rewrite pulled a fourth district into the owner-occupied requirement.
The Providence market posts an AirDNA score of 47/100, with Rental Demand (67) and Revenue Growth (67) leading, Investability (65) and Regulation (59) in the middle, and Seasonality (50) the “soft spot.” Annual revenue per listing averages $44,563 (up 2.5% year-over-year), with an average daily rate of $282.08 (up 6.4%) and occupancy of 58% (down 3.0%). Total active listings sit at 3,803, up 11.1%, and the Downtown Providence submarket (score 76, $34K a year at 61% occupancy) leads the area.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Providence and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Redfin Housing Market↗ · BiggerPockets Market Finder↗ · BNBCalc Providence STR Guide↗ · AirDNA↗
Investor Takeaway: Providence offers the deepest tenant and STR market in Rhode Island, with a 0.31% rent ratio, owner-occupancy rules in some zones and major wind exposure. Investors should generally confirm the zoning district first, expect many deals to land below 1.00x, and price hurricane insurance into every offer.
Over-list sales and a World Cup spike
Pawtucket sits just north of Providence – and it has the hottest buyer market on the list, with two-thirds of homes selling above asking price.
Hot homes in Pawtucket sell for about 5% above list price and go pending in around 11 days, and Redfin search data for the Providence area shows New York buyers looking at the market more than any other metro. However, the median price per square foot is down 5.6%, and First Street data on Redfin rates the hurricane-wind risk as “major” (99% of properties) and the flood risk as “minor” (3%). BiggerPockets figures are not available for Pawtucket, so rent figures are left out. BNBCalc notes that Pawtucket and Cranston run their own zoning rules on top of the state floor, and no specific Pawtucket STR rules were confirmed.
The Pawtucket submarket posts an AirDNA score of 55/100, with Rental Demand (78) and Seasonality (75) leading, Revenue Growth (61) in the middle, and Regulation (52) and Investability (54) the “soft spots.” Annual revenue per listing averages $28,944 (up 19.1% year-over-year), with an average daily rate of $154.92 (up 29.7%) and occupancy of 62% (down 2.6%). Total active listings sit at 162, up 62.0%, and the top listings, named for the World Cup and earning $81K to $132K a year at 100% occupancy, suggest that part of the jump is one-time event demand.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Pawtucket and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Redfin Housing Market↗ · AirDNA↗
Investor Takeaway: Pawtucket offers the strongest competition for buyers in the state, with an STR spike that may not repeat. Investors should generally expect to bid above list, verify local rents, and underwrite the STR side on trailing twelve-month actuals that exclude the World Cup months.
Bidding wars at a middle price
Cranston is Rhode Island's third-largest city, just south of Providence, and its buyer market is nearly as competitive as Pawtucket's, at a price in the middle of the list.
Hot homes in Cranston sell for about 6% above list price and go pending in around 11 days, and Redfin search data for the area shows New York buyers (a net 693) and Washington buyers (420) looking at the market, while local buyers most often search Miami and Portland, Maine. However, the share of homes sold above list fell 5.5 points year-over-year, which suggests bidding is cooling from a very high level, and First Street data on Redfin rates the flood risk as “moderate” (4% of properties), the hurricane-wind risk as “major” (99%) and the heat risk as “major” (90%). BiggerPockets and AirDNA figures are not included for Cranston, and no specific STR rules were confirmed.
Note: AirDNA short-term rental figures for Cranston are not included in this analysis, so this section covers the sales market only. Confirm Cranston's local STR zoning rules and the state registration before underwriting an STR plan.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Cranston and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Redfin Housing Market↗
Investor Takeaway: Cranston offers a very competitive sales market at a middle price, with no STR figures in this analysis. Investors should generally expect to bid at or above list, price wind and flood insurance into the deal, and verify rents and STR potential locally before underwriting.
Thinking About One of These Markets?
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Coastal prices and a cooling pace
South Kingstown includes Kingston, home to the University of Rhode Island, and the Matunuck beach communities, and it has the highest mainland price on the list with a sales pace that is slowing.
Redfin search data for the area shows New York buyers looking at South Kingstown more than any other metro, and homes sell about 1% below list on average, with price drops up 4.3 points to 28.1%. However, a $737,012 median price and falling sales mean the entry cost is high and buyers have some leverage, and Redfin has no flood or heat data for South Kingstown, so insurance quotes are essential. BiggerPockets and AirDNA figures are not included for South Kingstown, and no STR rules were confirmed.
Note: AirDNA short-term rental figures for South Kingstown are not included in this analysis, so this section covers the sales market only. Confirm the local STR rules and the state registration before underwriting an STR plan.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in South Kingstown and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Redfin Housing Market↗
Investor Takeaway: South Kingstown offers coastal and university demand at a high mainland price, with a slowing pace. Investors should generally negotiate on price, verify rents and STR rules locally, and confirm STR potential before underwriting.
Bay-town STR numbers and a $250 permit
Warwick wraps around Narragansett Bay just south of Providence – and it has the lowest price and the strongest mainland short-term rental numbers on the list, under the clearest local rulebook.
Hot homes in Warwick sell for about 5% above list price and go pending in around 9 days. However, the median price per square foot is down 4.6%, and First Street data on Redfin rates the flood risk as “moderate” with 15% of properties exposed and rising faster than the national average, the wind risk as “severe,” and the heat risk as “major” (98%). BNBCalc reports that Warwick has run a dedicated short-term rental ordinance since February 2023, requires a $250 city permit, allows rentals by right only in its single-family residential zones and one village district, and bars seven categories of dwelling outright, so the zoning of the specific address decides the plan. BiggerPockets figures are not available for Warwick.
The Warwick submarket posts an AirDNA score of 61/100, with Rental Demand (90) leading, Revenue Growth (68) and Investability (66) in good shape, and Regulation (54) and Seasonality (53) the “soft spots.” Annual revenue per listing averages $38,170 (up 6.1% year-over-year), with an average daily rate of $198.48 (up 8.6%) and occupancy of 65% (up 0.8%), the highest on the list. Total active listings sit at 216, up 20.7%, and waterfront properties such as the Waterfront Holiday Getaway ($123K a year) set the bar.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Warwick and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Redfin Housing Market↗ · BNBCalc Warwick STR Guide↗ · AirDNA↗
Investor Takeaway: Warwick offers the best mainland STR numbers and the lowest price on the list, with a permit and zoning screen that can exclude many addresses. Investors should generally confirm the zoning district and permit eligibility before they offer, and price flood and wind insurance into the deal.
Island revenue at seven-figure prices
Block Island sits about 13 miles off the Rhode Island coast, and it earns the highest revenue per listing and the highest nightly rate on the list, with a thin sales market and the most expensive homes!
Summer tourism drives the demand, and Redfin search data for the area shows New York buyers looking at New Shoreham more than any other metro. However, homes that now take 145 days to sell, against 30 a year ago in the same three-month window, and a market where multiple offers are rare mean that the entry cost is high and the exit is slow. Red Awning reports that New Shoreham may limit the number of vacation rentals in specific areas or require a permit for non-owner-occupied homes, so confirm the rules before making an offer. BiggerPockets figures are not available, and Redfin has no flood or heat data for the island.
The Block Island submarket posts an AirDNA score of 46/100, with Revenue Growth (98) at the top, Regulation (54), Rental Demand (53) and Investability (50) in the middle, and Seasonality (41) the “soft spot,” which is what a summer-only island looks like. Annual revenue per listing averages $71,509 (up 3.6% year-over-year), with an average daily rate of $683.65 (up 8.1%) and occupancy of 57% (down 8.2%), the steepest occupancy drop on the list. Total active listings sit at 182, up 8.3%, and top listings such as MyLife House ($168K a year) show how much ocean-view homes can earn.
Financing note: Block Island deals often qualify on TTM actuals or STR revenue projections given the seasonal revenue base, and Harpoon Capital offers industry leading DSCR Loans for properties throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Redfin Housing Market↗ · Red Awning Rhode Island STR Laws↗ · AirDNA↗
Investor Takeaway: Block Island offers the highest STR revenue in the article at seven-figure entry prices, with a seasonal calendar and a slow resale market. Investors should generally underwrite on trailing twelve-month actuals, model the off-season, and confirm the local permit rules before they offer.
| MARKET | AIRDNA SCORE |
ANNUAL REVENUE |
AVG. DAILY RATE |
OCCUPANCY | YOY LISTING GROWTH |
|---|---|---|---|---|---|
| Warwick | 61 | $38,170 (+6.1%) |
$198.48 (+8.6%) |
65% (+0.8%) | +20.7% (216 listings) |
| Pawtucket | 55 | $28,944 (+19.1%) |
$154.92 (+29.7%) |
62% (-2.6%) | +62.0% (162 listings) |
| Providence | 47 | $44,563 (+2.5%) |
$282.08 (+6.4%) |
58% (-3.0%) | +11.1% (3,803 listings) |
| Block Island | 46 | $71,509 (+3.6%) |
$683.65 (+8.1%) |
57% (-8.2%) | +8.3% (182 listings) |
Source: AirDNA, current as of 2026. Scores and figures reflect each market or submarket as defined by AirDNA and may not correspond 1:1 with city or county boundaries; Pawtucket may include one-time World Cup demand. Cranston and South Kingstown are not included in the AirDNA data used here. As of October 2026
A few patterns stand out. Warwick is the only market where revenue, rate and occupancy all rose on a sizable listing increase (+20.7%), while Providence and Block Island both lost occupancy (-3.0% and -8.2%) even as their rates rose. Pawtucket's +19.1% revenue and +29.7% rate come with listings up 62.0%, a shape that usually points to a short-lived event, and Block Island earns $71,509 per listing against $28,944 to $44,563 on the mainland, which is the “premium” that an island commands. Providence's 3,803 listings are more than 17 times Warwick's, so its per-listing figure is the most reliable on the list.
Rhode Island's real estate landscape offers a strategy for nearly every type of investor:
Market-level data is a starting point, not a substitute for underwriting the specific property, neighborhood, and rental strategy in front of you. Rhode Island requires state registration for every short-term rental, and Providence, Warwick and New Shoreham each add their own zoning or permit rules, so confirm what's allowed at your specific address before you close, and price wind and flood insurance into every mainland deal.
If you are ready to invest in one of these markets, start with our Rhode Island DSCR loans page.
Sources: Redfin housing market data, BiggerPockets Market Finder, AirDNA market and submarket data (airdna.co), BNBCalc Providence STR guide, BNBCalc Warwick STR guide and Red Awning Rhode Island STR laws. Data collected as of October 2026, ahead of the 2027 investing season.
Yes. According to BNBCalc, every short-term rental of 30 nights or fewer must register with the state Department of Business Regulation, and local rules apply on top. Red Awning reports a 5% state lodging tax plus a 7% sales tax, and BNBCalc reports that Warwick also requires a $250 city permit. Confirm current rules with the state and the city before you close.
No. Out-of-state and first-time investors can buy investment property in Rhode Island without any license. A DSCR loan qualifies you primarily based on the property itself rather than your personal income or professional credentials, which is part of why it's such a common financing tool for out-of-state buyers.
A DSCR (Debt Service Coverage Ratio) loan qualifies a property primarily based on the property (its value, value and location) relative to its mortgage payment, rather than the borrower's personal income or tax returns. If the property's projected or actual rent covers the mortgage payment (a DSCR of 1.00x or higher), it's generally easier to qualify, and Harpoon Capital also offers options for deals below 1.00x.
According to BNBCalc, Providence allows short-term rentals where the owner lives on site and hosts a room or where the zone doesn't require owner occupancy, and a recent zoning rewrite pulled a fourth district into the owner-occupied requirement. Whether a whole-home STR works depends on the zoning district of the specific address, so confirm it with the city before making an offer.
Harpoon Capital's DSCR loan program allows as little as 15% down on qualifying purchases, up to 85% LTV, with cash-out refinances available up to 80% LTV. Exact terms depend on the property, credit profile, and DSCR ratio. Fill out our DSCR Loan Application to see specific numbers for your deal.
Ready to Run the Numbers on a Rhode Island Deal?
Whether you're eyeing Warwick's bay-town numbers or island stays on Block Island, get a same-day rate and terms with our two-minute DSCR quote form, or explore the full Rhode Island DSCR Loans Program to see how we qualify the property, not just the borrower.
This article is for informational purposes only and does not constitute investment, legal, or financial advice. Harpoon Capital encourages investors to conduct independent due diligence before making any real estate investment decision.