1st Advantage MortgageHome / States / Rhode Island / South Kingstown
Rhode Island market guide
DSCR loans in South Kingstown, RI
Rental financing for South Kingstown investors, qualified on the property's rent.
A DSCR loan in South Kingstown turns on rent versus payment. Citywide medians from the Census are $1,368 a month for rent, $560,200 for home value and $5,338 a year for real estate taxes.
South Kingstown by the Census numbers
A DSCR lender in South Kingstown is comparing a rent against a payment, and the citywide benchmarks are a median gross rent of $1,368 and a median home value of $560,200. The rent figure is close to the Rhode Island median of $1,342. Put the two medians together and South Kingstown shows a gross yield of 2.9%, on the low side, so the payment, not the rent, usually decides whether a file clears. Because the rent number covers apartments as well as houses, expect single-family rentals to land above or below it.
| Indicator | Rhode Island | South Kingstown | Difference |
|---|---|---|---|
| Households that rent | 36.4% | 24.6% | -32% |
| Tax as a share of home value | 1.21% | 0.95% | -21% |
| Household income, median | $87,796 | $108,960 | +24% |
| Typical owner-occupied value | $404,200 | $560,200 | +39% |
| Typical monthly rent | $1,342 | $1,368 | +2% |
| Persons per household | 2.39 | 2.31 | |
| Share in 2-4 unit buildings | 22.1% | 6.7% | -69% |
| Share of homes detached | 55.7% | 77.5% | +39% |
| Long commuters, 45 min plus | 14.8% | 16.1% | +9% |
| Degree holders, age 25+ | 37.7% | 60.3% | +60% |
| Workers on their own account | 9.0% | 10.0% | +11% |
| Renters paying 30%+ of income | 48.0% | 52.9% | +10% |
| Units sitting vacant | 9.1% | 18.8% | +106% |
| Typical construction year | 1962 | 1978 | |
| Annual rent divided by value | 4.0% | 2.9% | -26% |
| Residents (Census estimate) | 1,101,801 | 32,073 |
Renters are a minority in South Kingstown at 24.6% of households (well below the Rhode Island median of 36%). Expect rentals to cluster near employers, campuses or older housing. Median household income of $108,960 (about 24% above the Rhode Island median of $87,796) sets the ceiling for rent growth, and 53% of renters already spend 30 percent or more of income on rent.
What South Kingstown investors are buying
About 78% of South Kingstown's housing is detached single-family, which means a typical rental purchase is a house with its own roof, yard and repair schedule. A median build year of 1978 puts most of the stock in its second round of big repairs, and an inspector will show what remains.
About 19% of South Kingstown's housing units are vacant, and the rental vacancy rate (units for rent against rented plus for-rent units) works out to 6.0%. The Census flags 14% of units as seasonal or recreational use, so demand swings with tourist seasons and local lodging rules.
Reading South Kingstown as an investor
A 2.9% gross ratio leaves little margin in South Kingstown. Every dollar of insurance, tax and association dues matters, and some deals work only with lower leverage. Mid-aged stock (median built 1978) means many roofs and HVAC units are near the end of their lives, so ask for installation dates. With renters at 25% of households, plan for a longer marketing period and a smaller tenant pool than in a renter-heavy city.
Insurance, tax and flood context for South Kingstown
The Census reports median real estate taxes paid of $5,338 in South Kingstown, about 9% above the Rhode Island median of $4,900. Against the median value that is an effective rate of roughly 0.95%, compared with 1.21% for Rhode Island as a whole. At the median rent that tax bill takes roughly 33% of a year's rent before insurance, dues or interest.
The federal National Risk Index scores Washington County relatively low for overall risk, led by hurricanes (relatively moderate), coastal flooding (relatively moderate) and riverine flooding (relatively moderate). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in Washington County, FEMA index | Level |
|---|---|
| Ice storms exposure | Relatively Moderate |
| Riverine flooding exposure | Relatively Moderate |
| Coastal flooding exposure | Relatively Moderate |
| Hurricanes exposure | Relatively Moderate |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Low |
Flood risk in South Kingstown is parcel by parcel: check the address on FEMA's flood map service, because a mapped high-risk zone means required flood cover and a heavier payment.
What the South Kingstown medians allow
For a rough fit test, treat $1,368 as the rent and $445 as the monthly tax. The payment cannot exceed $1,368 at a 1.00 ratio, so $923 is left after taxes for interest, principal, insurance and any association dues, shrinking to $650 if the lender wants 1.25.
Rules a South Kingstown landlord should check
Before you underwrite a South Kingstown rental, confirm with city hall and Washington County whether landlords must register, pass an inspection or hold a permit, especially for stays under 30 days, because those rules can change what income a lender will count. Guests who book by the night in South Kingstown are taxed under state law as follows. 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.
Rhode Island gives a landlord 20 days after the tenancy ends to return a deposit, an easy deadline to miss without a checklist. Rent increases in Rhode Island: No statewide rent cap found in Chapter 34-18.
How South Kingstown stacks up against its neighbors
Looking across the table, values run from $330,800 (West Warwick) up to $746,900 (Newport), and South Kingstown lands at $560,200.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Coventry | 18% | $5,099 | $356,200 | 35,907 | $1,206 |
| West Warwick | 43% | $4,962 | $330,800 | 31,173 | $1,303 |
| Westerly | 25% | $3,847 | $466,600 | 23,333 | $1,257 |
| Newport | 50% | $5,264 | $746,900 | 24,874 | $1,698 |
| South Kingstown | 25% | $5,338 | $560,200 | 32,073 | $1,368 |
Tenants, jobs and anchors in South Kingstown
About 10.0% of South Kingstown workers are self-employed, the kind of borrowers whose tax returns understate cash flow and who often prefer a loan sized on rent. Looking at who fills the rentals, government workers are about 21% of employment, 60% of adults hold a bachelor's degree or higher and 16% of commuters travel 45 minutes or more.
Higher education in and around South Kingstown includes University of Rhode Island, which feeds demand for student, staff and faculty housing near campus.
Before you make an offer in South Kingstown
Bring the South Kingstown numbers to a loan officer: the rent, the taxes, the insurance and your reserves. Apply online or ask for a quote, and use the calculator to preview the ratio.
More Rhode Island markets
- All Rhode Island DSCR loans
- DSCR loans in Newport, RI
- DSCR loans in Westerly, RI
- DSCR loans in West Warwick, RI
- DSCR loans in Coventry, RI
- Every market we cover
Where these facts come from
- American Community Survey tables, Rhode Island
- FEMA hazard ratings for Washington County
- South Kingstown on Wikipedia
- Rhode Island landlord deposit rules, R.I. Gen. Laws 34-18-19(a)-(h)
- RI Division of Taxation, hotel tax (Rhode Island)
- RI DBR short-term rentals (Rhode Island)
Census figures are 2020 to 2024 ACS five-year estimates for South Kingstown and carry margins of error. The Rhode Island legal summaries are from the RedFlagLease dataset, licensed CC BY 4.0, with statute links. Verified October 2026. Ordinances and statutes change, so confirm before acting.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Lease or market rent: what counts in South Kingstown?
The property's own rent evidence decides: a lease, or the market rent from the appraisal. Citywide, South Kingstown renters report a median of $1,368.
Do taxes and insurance count in the South Kingstown DSCR ratio?
They do. Rent of $1,368 divided by 1.25 gives about $1,094 as the payment ceiling, and $445 of that is spoken for by the median South Kingstown tax bill.
What do South Kingstown owners pay in real estate taxes?
The Census reports a median of $5,338 a year for South Kingstown owners, about 0.95% of median value against 1.21% for Rhode Island. The county reassesses after a sale, so ask the tax office for an estimate on your purchase price.
Can nightly stays at a South Kingstown property support a DSCR file?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that South Kingstown and any HOA permit stays under 30 days, and that you can register for Rhode Island lodging tax.
When must a South Kingstown landlord return a deposit?
Under R.I. Gen. Laws 34-18-19(a)-(h): The deposit is due back within 20 days of move-out. Check the statute and your lease before collecting.
What hazard risk does South Kingstown carry for investors?
The county scores relatively low overall in FEMA's index, with hurricanes leading. Parcel-level flood maps and a real insurance quote give the answer that counts.
Can I close a South Kingstown DSCR loan in an LLC?
No, but it is common. Entity borrowers supply articles, an operating agreement and an EIN letter, and the owners typically guarantee the loan. A Rhode Island attorney can advise on structure.