Quick answer
The median Rhode Island home is valued at $455,700; with 10% down at the 7.24% national average rate it costs about $3,593 a month with property tax and insurance. Since October 1, 2025 the state’s realty conveyance tax is 0.75% of the price — about $3,418 on that home — with a second tier on residential value above $800,000. First-time buyers can borrow $15,000 at 0% for the down payment through RIHousing’s 15kDPA, repaid only when they sell or move out.
Key facts
$83,504/yr
Median household income
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
1.07%
Effective property tax rate
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
Rhode Island’s higher conveyance tax
The realty conveyance tax is collected when the deed is recorded. On October 1, 2025 the rate rose to 0.75% of the price, the 8th-highest statewide rate among the states and DC, and a second tier now adds the same rate again on the part of a residential price above $800,000.
Conveyance tax at two prices
- Median-value home, $455,700: $455,700 × 0.75% ≈ $3,418.
- A $950,000 home: $7,125 on the full price plus $1,125 on the $150,000 above $800,000 = $8,250.
Your purchase and sale agreement should say which side pays it. Buyers also cover lender fees, title insurance, recording and prepaid items; the CFPB’s 2%–5% rule of thumb works out to $9,114–$22,785 on the median home. The closing cost estimator includes the new rates.
What the median Rhode Island home costs
$455,700 home, 10% down, 30-year fixed at 7.24%
| Part of the payment | Monthly |
|---|---|
| Principal and interest on $410,130 | $2,795 |
| Property tax at 1.07% a year | $406 |
| Homeowners insurance at the national $4.90 per $1,000 (Freddie Mac) | $186 |
| PMI (midpoint of Freddie Mac’s range) | $205 |
| Total | $3,593 |
Coastal homes may need flood insurance on top, and older homes can cost more to insure. Rerun it with your quote in the payment calculator.
A first-time buyer at the median income
The median Rhode Island household earns $83,504. Spending Freddie Mac’s 30% of that on housing leaves $2,088 a month, which supports about $265,000 with 10% down — $190,700 below the median value; buying the median home that way takes roughly $144,000 a year. If you can’t bring 10%, here is the same budget with the $15,000 15kDPA as the only down payment.
| Part of the payment | Monthly |
|---|---|
| Principal and interest on $250,000 | $1,704 |
| Property tax at 1.07% | $236 |
| Insurance at the national $4.90 per $1,000 | $108 |
| PMI | $125 |
| 15kDPA (no monthly payment) | $0 |
| Total | $2,173 |
The smaller down payment pushes the monthly cost above the $2,088 budget; lenders look at your full debt-to-income ratio rather than one rule of thumb. Test other combinations in the affordability calculator.
RIHousing programs
Rhode Island Housing (RIHousing) lends through participating lenders and its own Loan Center. Its first-time buyer loans can finance the full price, and every first-time buyer must take a homebuyer education class before closing.
| Program | Amount | Terms | Minimum score |
|---|---|---|---|
| 15kDPA | $15,000 | 0% interest, no monthly payments; repaid when you sell, transfer or stop living in the home | 660 |
| Extra Assistance | Up to $20,000 (capped at a share of the price) | Second mortgage at your first-mortgage rate, repaid over 15 years | Lower than 15kDPA’s |
Both are for first-time buyers of one- to four-family homes or condos used as a primary residence. For loans funded by mortgage revenue bonds, the purchase price can’t exceed $915,883 — the median home is well under that. Loan Center income limits vary by area; in the Providence area a one- or two-person household can earn up to $134,520, and the state’s median household income is below that. Participating lenders can serve eligible buyers at any income. RIHousing also runs a first-generation pilot in one Newport neighborhood. More on stacking help in the down-payment grants guide.
Old houses and town-by-town tax bills
Half of Rhode Island’s homes were built before 1964, the 3rd-oldest housing stock among the states and DC. Older homes can hide lead paint, aging heating systems and outdated wiring; make the offer contingent on an inspection and price any work before you choose a down payment.
Property tax is set by each city and town. The median bill is $4,886 a year, the 9th-highest among the states and DC, and the effective rate of 1.07% is above the US 0.89%. Ask the local assessor whether the town offers a homestead exemption for owner-occupied homes and how to file for it.
Frequently asked questions
What is the conveyance tax in Rhode Island?
Since October 1, 2025 it is 0.75% of the price, plus the same rate again on residential value above $800,000. On a median-value $455,700 home that comes to about $3,418.
Does Rhode Island have down payment assistance?
Yes. RIHousing’s 15kDPA lends first-time buyers $15,000 at 0% with no monthly payments, and Extra Assistance offers up to $20,000 as a second mortgage repaid over 15 years.
What credit score do I need for RIHousing’s 15kDPA?
At least 660. You must also be a first-time buyer, meet RIHousing’s price and income limits and complete a homebuyer education course.
Is the 15kDPA forgivable?
No. It is a 0% loan with no monthly payments, but the full amount is due when you sell or transfer the home or stop living in it as your primary residence.
What is the property tax rate in Rhode Island?
Census data put the median bill at $4,886 a year, about 1.07% of median home value. Each city and town sets its own rate.
How much income do I need to buy a house in Rhode Island?
For the median $455,700 home with 10% down at today’s average rate, keeping housing under 30% of gross income takes roughly $144,000 a year.
Sources
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Median household income (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- Freddie Mac Research — Average homeowners insurance premium per $1,000 of home value (2023 data)
- Freddie Mac My Home — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- Freddie Mac My Home — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- RI Division of Taxation: Notice 2025-05 — Rhode Island conveyance tax: second tier applies to residential value above; State real estate transfer tax (Aug 21, 2025)
- CFPB — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- RIHousing: 15kDPA — RIHousing 15kDPA (0% loan, no monthly payments); RIHousing 15kDPA minimum credit score (Apr 30, 2026)
- RIHousing: Homebuyers — RIHousing maximum purchase price, bond-financed first-time buyer loans; RIHousing Loan Center income limit, Providence area, households of one or two (Oct 29, 2026)
- RIHousing: Extra Assistance — RIHousing Extra Assistance second mortgage, up to; RIHousing Extra Assistance second mortgage term (Apr 30, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Median year homes were built (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.