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Rhode Island market guide
DSCR loans in Pawtucket, RI
Rental financing for Pawtucket investors, qualified on the property's rent.
Pawtucket, RI DSCR loans work like they do elsewhere: the lender divides the property's rent by its full monthly payment. The local inputs are a median gross rent of $1,208, median real estate taxes of $4,115 and a renter share of 50%.
Pawtucket rents, values and tenants
Two Census medians frame the Pawtucket rental market: gross rent of $1,208 a month, which is about 10% below the Rhode Island median of $1,342, and a home value of $325,500, which is about 19% below the Rhode Island median of $404,200. A quick screen: twelve months of Pawtucket median rent over its median home value equals 4.5%, a thin gross ratio, which tells you purchase prices are high relative to rent. Use it to compare markets, then replace it with real rent evidence for the address.
| Indicator | Rhode Island | Pawtucket | Difference |
|---|---|---|---|
| Share in 2-4 unit buildings | 22.1% | 40.6% | +84% |
| Share of homes detached | 55.7% | 33.9% | -39% |
| Long commuters, 45 min plus | 14.8% | 16.9% | +14% |
| Degree holders, age 25+ | 37.7% | 22.2% | -41% |
| Workers on their own account | 9.0% | 6.6% | -27% |
| Renters paying 30%+ of income | 48.0% | 45.9% | -4% |
| Units sitting vacant | 9.1% | 6.7% | -26% |
| Typical construction year | 1962 | 1947 | |
| Annual rent divided by value | 4.0% | 4.5% | +12% |
| Households that rent | 36.4% | 49.9% | +37% |
| Tax as a share of home value | 1.21% | 1.26% | +4% |
| Annual property tax bill, median | $4,900 | $4,115 | -16% |
| Typical owner-occupied value | $404,200 | $325,500 | -19% |
| Typical monthly rent | $1,342 | $1,208 | -10% |
| Residents (Census estimate) | 1,101,801 | 75,893 |
Tenure in Pawtucket is split fairly evenly: 49.9% renter-occupied and 50% owner-occupied, with the renter share well above the Rhode Island median of 36%. Household income runs a median $68,310 (about 22% below the Rhode Island median of $87,796), while 46% of renters spend 30 percent or more of income on housing.
Homes, buildings and vacancies in Pawtucket
Pawtucket has a deep multifamily layer: roughly 62% of units sit in buildings of two or more, with 41% in duplexes through fourplexes. With a median build year of 1947, older roofs, plumbing and electrical are the norm and inspection findings drive the numbers.
Roughly 7% of units in Pawtucket sit vacant, and the share of rentals available for rent is 2.1% at the survey's snapshot.
How investors should read Pawtucket
Yields near 4.5% make Pawtucket a market for careful buyers. The ratio can still work, usually through a lower loan amount, a rent above the median or a property with several units. Properties built around 1947 often need systems work, so price a capital reserve alongside the payment. A 50% renter share is large enough to keep units leased, so location relative to jobs and schools drives rent more than the market as a whole.
Carrying costs in Pawtucket
Property taxes in Pawtucket run a median $4,115 a year for owners, about 16% below the Rhode Island median of $4,900. As a share of median value, that is about 1.26%. Compared with annual median rent, the tax line is about 28%.
FEMA's National Risk Index (version 1.20, December 2025) rates Providence County as relatively moderate overall for natural hazard risk, with heat waves (relatively high), riverine flooding (relatively high) and cold waves (relatively high) among its leading hazards.
| Hazard in Providence County, FEMA index | Level |
|---|---|
| Lightning exposure | Relatively High |
| Cold waves exposure | Relatively High |
| Riverine flooding exposure | Relatively High |
| Heat waves exposure | Relatively High |
| Social vulnerability score | Relatively Moderate |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Price the insurance before you price the offer: a landlord quote for the Pawtucket property, plus flood cover where the map requires it, goes into the payment your rent is divided against.
A worked DSCR test for Pawtucket
At the city medians a DSCR file in Pawtucket has $865 a month after taxes to cover principal, interest, insurance and dues if the ratio is 1.00, or $623 if the ratio is 1.25. Those two numbers show why insurance quotes and tax estimates come first.
Legal checks before a Pawtucket purchase
Local rental rules in Pawtucket are not summarized here because we could not verify them from a city source. Ask the city and Providence County about registration, inspection and short-term rental requirements, and confirm what an HOA allows. For Pawtucket short-term hosts, one state-level point stands out. Rhode Island has required short-term rental operators to register with the Division of Taxation, hold a sales tax permit and collect sales and hotel tax since July 1, 2019, and listings on hosting platforms also need a statewide short-term rental registration with the Department of Business Regulation.
A Pawtucket landlord must handle the deposit within 20 days after move-out under Rhode Island law. As to caps on rent in Pawtucket: No statewide rent cap found in Chapter 34-18.
Pawtucket next to nearby cities
Prices in the comparison range from $352,100 in Central Falls to $365,500 in East Providence, with Pawtucket at $325,500.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| East Providence | 40% | $4,545 | $365,500 | 47,281 | $1,288 |
| North Providence | 36% | $4,843 | $355,900 | 34,293 | $1,405 |
| Providence | 59% | $4,418 | $362,200 | 191,767 | $1,408 |
| Central Falls | 74% | $3,744 | $352,100 | 22,701 | $1,200 |
| Pawtucket | 50% | $4,115 | $325,500 | 75,893 | $1,208 |
Who rents in Pawtucket
Self-employed workers, incorporated or not, make up 6.6% of employed residents, a group that often has irregular tax-return income and a natural fit with rent-based qualification. On the workforce side, government workers are about 12% of employment, 22% of adults hold a bachelor's degree or higher and 17% of commuters travel 45 minutes or more.
For getting around, Pawtucket has interstate access via I-95 and air service through Rhode Island T. F. Green International Airport, which matters to commuters and to out-of-town owners planning a visit.
Next steps for a Pawtucket purchase
Run the Pawtucket rent, tax and insurance figures through the DSCR calculator. When they clear the ratio, start an application or ask for a quote.
More Rhode Island markets
- All Rhode Island DSCR loans
- DSCR loans in Central Falls, RI
- DSCR loans in Providence, RI
- DSCR loans in North Providence, RI
- DSCR loans in East Providence, RI
- Every market we cover
Source links
- Lodging tax reference: RI Division of Taxation, hotel tax
- State rule cited for Pawtucket hosts: RI DBR short-term rentals
- 2020 to 2024 ACS data used for Pawtucket
- Federal hazard index, RI
- Pawtucket overview (Wikipedia)
- R.I. Gen. Laws 34-18-19(a)-(h), the Rhode Island deposit law
Pawtucket's figures are ACS estimates covering 2020 to 2024 and are not exact counts. Rhode Island landlord-tenant summaries draw on the RedFlagLease dataset (CC BY 4.0) and the statutes linked above. Facts were checked in October 2026, and rules change.
Pre-offer checklist
On a Pawtucket purchase, line up the lease, the tax estimate, the insurance quote and any association dues before the appraisal is ordered, and ask the appraiser's office what rent comparables they plan to use.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How does a lender pick the rent for a Pawtucket DSCR file?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the Pawtucket median is $1,208.
How do taxes and insurance affect a DSCR loan in Pawtucket?
Yes, the payment includes principal, interest, taxes, insurance and association dues. At the Pawtucket median rent of $1,208, a 1.25 ratio allows about $966 in total payment, of which roughly $343 a month goes to median taxes.
How high are property taxes in Pawtucket?
Pawtucket owners report a median $4,115 in annual real estate taxes, an effective 1.26% (Rhode Island: 1.21%). Your own bill depends on the assessed value after purchase.
Do DSCR lenders count short-term rental income in Pawtucket?
Depending on the lender, yes, if the property may legally be used that way and income is documented. Confirm the local permit, association rules and Rhode Island lodging taxes before you underwrite nightly income in Pawtucket.
What does Rhode Island law say about deposits at a Pawtucket rental?
A landlord has 20 days to return the deposit. Both come from R.I. Gen. Laws 34-18-19(a)-(h).
How exposed is Pawtucket to natural hazards?
The National Risk Index gives the county an overall relatively moderate rating. Use that as a prompt to get quotes, not as a verdict on one Pawtucket street.
How do LLC closings work for Pawtucket rentals?
An individual can borrow too. If you prefer an entity for the Pawtucket purchase, expect to provide formation documents and sign a personal guaranty.