Income needed to buy a house in Rhode Island
A median-priced home in Rhode Island costs $455,700. With 20% down you'd need about $127,223 a year, $43,719 more than the state's median household income of $83,504. Rhode Island ranks #40 of 51 for the lowest income needed.
Income needed: $127,223 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $127,223 a year to buy a $455,700 home in Rhode Island with $91,140 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $2,413 |
| Property tax | $407 |
| Homeowners insurance | $148 |
| Total | $2,969 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $22,785 | $3,601 | $154,345 |
| 10% | $45,570 | $3,441 | $147,474 |
| 20% | $91,140 | $2,969 | $127,223 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Rhode Island: what's different
- Transfer tax
- 0.75% (1.5% above $824,000)
- On the median home
- $3,420
- Homestead break
- Set by each city or town
- First-time buyer help
- RIHousing
- Transfer and recording taxes. Since October 1, 2025, the conveyance tax is $3.75 per $500 (0.75%), and the part of a home's price above $824,000 (the 2026 threshold, adjusted each year) pays another 0.75%. The seller pays unless the parties agree otherwise. On the median Rhode Island home ($455,700), that's about $3,420 in conveyance tax.
- Property tax breaks for your home. There's no statewide homestead exemption; each city or town decides. Providence, for example, taxes owner-occupied homes at a lower rate than other residential property instead of giving an exemption.
- First-time buyer help. RIHousing offers 15kDPA through participating lenders (up to $15,000 toward the down payment and closing costs as a 0% loan). Check its site for income and price limits.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in Rhode Island's largest metro area
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Providence, RI | $130,909 | $471,000 | $82,870 |
The median home in the Providence area is worth $471,000, 3% more than the statewide median, and takes about $130,909 a year to buy with 20% down.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Income needed: 20% down at 6.95%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in Rhode Island more expensive than most states
- Home prices: the median value of $455,700 is 26% above the U.S. median of $360,600.
- Property tax: about 1.07% of value a year ($407 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,778 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $249 a month on this loan.
29 states need at least 20% less income to buy their median home. States with a similar income requirement:
- New York $130,169
- Oregon $130,842
- New Hampshire $132,355
- Connecticut $119,521
- Maryland $118,716
- Utah $137,189
Frequently asked questions
How much do you need to make to buy a house in Rhode Island?
About $127,223 a year for the median home of $455,700 with 20% down at 6.95%. With 10% down it's about $147,474.
What is the property tax rate in Rhode Island?
The median Rhode Island homeowner pays $4,886 a year, about 1.07% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Rhode Island?
Median rent is $1,418 a month, while owning the median home costs about $2,969 a month with 20% down, before maintenance. Renting affordably takes about $56,720 a year under the 30% rule.