Rhode Island Rental Property ROI Calculator
Free Rhode Island rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Rhode Island's 1.63% property tax rate.
How This Calculator Works
Calculation methodology and assumptions
This calculator uses standard real estate investment analysis to determine the return on a rental property in Rhode Island. It factors in the mortgage payment (using a standard amortization formula), property taxes at Rhode Island's effective rate of 1.63%, insurance, vacancy loss, maintenance reserves, and property management fees. The cap rate is calculated as Net Operating Income divided by purchase price. Cash-on-cash return measures annual cash flow relative to total cash invested (down payment + estimated closing costs). The 10-year projection assumes 3% annual appreciation and 2% annual rent increases.
Key State Information
Rhode Island has an effective property tax rate of 1.63%, which is above the national average of 1.10%. Rhode Island has a progressive income tax up to 5.99% state income tax that applies to rental income.
Frequently Asked Questions
What is the average property tax rate in Rhode Island?
Rhode Island's effective property tax rate is 1.63%, which means on a $410,000 home, you'd pay approximately $6,683 per year in property taxes.
Is Rhode Island a good state for rental property investment?
Rhode Island offers a median home price of $410,000 with 2BR rents averaging $1330/month. The higher property tax rate reduces net cash flow but may be offset by strong rental demand. Use this calculator with your specific numbers to determine the actual ROI.
What is a good cap rate for rental property in Rhode Island?
A cap rate of 5-8% is generally considered good for rental properties. In Rhode Island, cap rates vary significantly by market. Urban areas tend to have lower cap rates (3-5%) but more consistent appreciation, while rural areas may offer higher cap rates (7-10%) with less growth potential.
How much do I need to invest in a rental property in Rhode Island?
For a median-priced home in Rhode Island ($410,000), a 20% down payment would be $82,000. Including estimated closing costs of $12,300, you'd need approximately $94,300 in cash.
Does Rhode Island have landlord-friendly laws?
Rhode Island has moderate landlord-tenant laws. Research specific local regulations before investing.
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