Rhode Island · main city

Buying a home in Providence, Rhode Island

In Providence, the median value of owner-occupied homes is $445,400, Providence County's effective property tax rate is 1.25%, a purchase mortgage carried a median $6,136 in total loan costs in 2025, and median gross rent is $1,408 a month.

Data as of : Census ACS 2025 1-year, Census Vintage 2024, FHFA HPI 2026Q2, Census ACS 2020-2024, HMDA 2025, HUD FY 2027. Sources

Checked on against the official sources listed at the bottom of the page.

Providence home costs, fact by fact

Calculate for Providence

If you buy

Rhode Island state transfer tax

Real estate conveyance tax (R.I. Gen. Laws 44-25-1): $3.75 for each $500 of price or fractional part of $500; residential property adds a second $3.75 per $500 on the part above $800,000 (threshold indexed to inflation from 2026).

Price$445,400
State transfer taxnot computed
Who paysThe seller

Default price: the Providence median value of owner-occupied homes, $445,400 (Census ACS 2025). Not computed: Basic tax = $3.75 x number of $500 blocks (fraction rounds up) on the whole price, including any lien that stays on the property; applies to deeds for more than $100. For residential property, add a second tax of $3.75 per $500 block on the part of the price above $800,000. The statute adjusts the $800,000 threshold with CPI-U from tax years beginning January 1, 2026 and the adjusted figure is not in the statute; check with the Division of Taxation. Example at $900,000 with an $800,000 threshold: $6,750 + $750 = $7,500. Who pays: By law, in the absence of an agreement to the contrary, the seller (grantor) pays (44-25-1(a)); the purchase contract can shift the cost. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Rhode Island transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Rhode Island state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

In short

The median value of owner-occupied homes in the city of Providence is $413,800, according to the Census Bureau’s 2024 American Community Survey, against $455,700 for Rhode Island. FHFA’s index for the Providence–Warwick area rose 4.2% between the second quarters of 2025 and 2026. RIHousing offers first-time buyers up to $25,000 toward a down payment.

How much homes cost in Providence

The Census Bureau’s American Community Survey (ACS) asks owners how much they think their home would sell for. The median of those answers is a useful benchmark, but it is not a sale price: it covers every owner-occupied home, including homes bought long ago. Our page on Rhode Island home prices explains the method in detail.

AreaMedian value, 2024 (ACS)Margin of error (90%)
City of Providence$413,800±$29,941
Providence County$422,000±$8,770
Providence–Warwick, RI-MA metro area$471,000±$5,256
Rhode Island$455,700±$6,647
United States$360,600±$618

Source: U.S. Census Bureau, ACS 1-Year Estimates 2024, table B25077. The 2025 estimates are scheduled for October 29, 2026.

The city figure has a wide margin of error because the sample is small, so the true median is very likely between about $383,900 and $443,700. The gap between the city and the county ($8,200) is well inside that margin.

Are Providence prices rising?

The Federal Housing Finance Agency (FHFA) tracks repeat sales of the same single-family homes. Its purchase-only, seasonally adjusted index for the Providence–Warwick, RI-MA metro area, published August 25, 2026, shows:

Area1-year change (Q2 2025 to Q2 2026)5-year change (Q2 2021 to Q2 2026)
Providence–Warwick, RI-MA metro area+4.2%+43.1%
Rhode Island+4.7%+45.5%
United States+2.1%+33.4%

Source: FHFA House Price Index, quarterly purchase-only files. Changes calculated by Payotte from the published index values.

Prices in the Providence area rose about twice as fast as the national index over the past year, and by more than two-fifths over five years.

Closing costs, property tax and transfer tax

On top of the price, buyers and sellers pay closing costs: lender fees, the appraisal, title insurance, recording fees and other items. Several depend on your loan and the providers you choose. Our guide to closing costs in Rhode Island explains who pays what. Property tax rates are set locally and change every year; see our Rhode Island property tax guide, and our page on transfer tax in Rhode Island for the tax on the transfer of the deed. To see how property tax can be paid through your monthly mortgage payment, read our guide to escrow accounts.

Help for Providence buyers

RIHousing. The state housing finance agency runs a Loan Center in Providence and offers three assistance programs: 15kDPA ($15,000), Extra Assistance (up to $20,000) and FirstGenHomeRI ($25,000). Providence is in RIHousing’s “Providence Area” for income limits: $134,520 for 1-2 people and $156,940 for 3 or more, for mortgages processed through the Loan Center. Details are in our guide to first-time buyer programs in Rhode Island.

FirstGenHomeRI for Providence residents. The program is open to first-generation buyers who currently live in Providence, except in zip code 02906, as well as in Central Falls, East Providence, Pawtucket, Woonsocket and part of Newport. You may buy anywhere in Rhode Island. Funds are limited and go first-come, first-served.

City programs for owners. The City of Providence Department of Housing and Human Services lists a CDBG Home Repair Program (deferred-payment, 0% loans for emergency repairs, with a waitlist for non-emergencies; 401-680-8400) and Lead Safe Providence, where loans for owner-occupied homes are forgiven after three years. These help after you own the home. Ask about older houses before you buy: our home inspection cost guide explains what an inspection covers.

Rhode Island guides for Providence buyers

Frequently asked questions

What is the median home price in Providence?

The Census Bureau’s 2024 American Community Survey puts the median value of owner-occupied homes in the city of Providence at $413,800 (±$29,941). This is what owners think their home is worth, not the median sale price of recent sales.

Are home prices in Providence going up?

According to the FHFA purchase-only index, prices in the Providence–Warwick, RI-MA metro area rose 4.2% between the second quarter of 2025 and the second quarter of 2026. Over five years, they rose 43.1%.

Is Providence cheaper than the rest of Rhode Island?

By the ACS median, yes: $413,800 in the city against $455,700 statewide, though the city’s margin of error is wide (±$29,941). The Providence–Warwick metro area, at $471,000, is higher than both.

Is there down payment help for buying in Providence?

Yes. RIHousing offers 15kDPA ($15,000), Extra Assistance (up to $20,000) and FirstGenHomeRI ($25,000) to qualifying first-time buyers. The City of Providence’s housing page does not list a down payment program.

Who can use FirstGenHomeRI in Providence?

First-generation buyers who currently live in Providence outside zip code 02906, or in the other listed communities, with a minimum credit score of 660, within RIHousing’s price and income limits, using a mortgage from the RIHousing Loan Center.

More Rhode Island guides

Sources

Questions about buying a home in Providence

How much is property tax in Providence?

Homeowners in Providence County pay a median $4,683 a year in property tax, 1.25% of the county median home value of $373,600 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Providence?

Home-purchase mortgages in Providence County carried median total loan costs of $6,136 in 2025; half of the 4,646 loans fell between $4,411 and $12,816 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Providence?

Rhode Island taxes real estate sales through its conveyance tax of $3.75 for each $500 of the price, or part of it, which is $3,000 on a $400,000 home. Unless the parties agree otherwise the seller pays, and residential sales above $800,000 owe a second layer.

Is it cheaper to rent or buy in Providence?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Providence ($362,200) equals 21.4 years of the median gross rent ($1,408 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Professionals by sector of Providence

Who licenses each trade in Rhode Island

Other large cities: see cities in Rhode Island.

Data sources for the figures above

Rhode Island · All states · Federal guides