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Rhode Island market guide
DSCR loans in Warwick, RI
Rental financing for Warwick investors, qualified on the property's rent.
Warwick is a RI market where the rent-to-payment ratio decides the loan. Median rent is $1,363, median home value is $354,600 and 27% of households rent.
Market snapshot for Warwick
Median gross rent in Warwick: $1,363, close to the Rhode Island median of $1,342. Median owner-occupied home value: $354,600, about 12% below the Rhode Island median of $404,200. Those are citywide medians, so an individual address can sit well on either side of them. By the simple measure of annual rent over home value, Warwick sits at 4.6%, a thin gross ratio, which tells you purchase prices are high relative to rent. Lenders do not underwrite a ratio like that, but investors use it to decide where to look first.
| Indicator | Rhode Island | Warwick | Difference |
|---|---|---|---|
| Share in 2-4 unit buildings | 22.1% | 8.3% | -63% |
| Share of homes detached | 55.7% | 69.1% | +24% |
| Long commuters, 45 min plus | 14.8% | 12.3% | -17% |
| Degree holders, age 25+ | 37.7% | 33.7% | -11% |
| Renters paying 30%+ of income | 48.0% | 53.1% | +11% |
| Units sitting vacant | 9.1% | 3.9% | -57% |
| Typical construction year | 1962 | 1961 | |
| Annual rent divided by value | 4.0% | 4.6% | +16% |
| Households that rent | 36.4% | 26.7% | -27% |
| Tax as a share of home value | 1.21% | 1.30% | +7% |
| Annual property tax bill, median | $4,900 | $4,616 | -6% |
| Household income, median | $87,796 | $88,708 | +1% |
| Typical owner-occupied value | $404,200 | $354,600 | -12% |
| Typical monthly rent | $1,342 | $1,363 | +2% |
| Residents (Census estimate) | 1,101,801 | 83,175 |
Only 26.7% of occupied homes in Warwick are rented, well below the Rhode Island median of 36%, so the rental pool is smaller and a vacant unit may take more marketing effort. Against a median household income of $88,708 (close to the Rhode Island median of $87,796), 53% of renters report rent at or above 30 percent of income.
Property types and condition in Warwick
Detached houses are 69% of all units in Warwick. That mix favors single-family rentals and makes small multifamily scarcer and, sometimes, more valuable. A median construction year of 1961 means many properties predate modern codes, so budget for repairs before you trust a cash-flow figure.
Vacancy is a quiet driver of rent. 4% of homes are vacant citywide and 3.5% of the rental inventory was listed for rent when the Census surveyed.
What the data means for Warwick buyers
A gross yield of 4.6% means Warwick is a market where purchase prices run ahead of rent, so a 1.0 ratio generally takes a larger down payment or a property priced below the local median. An older stock (built 1961 at the median) means the inspection report can change your numbers more than the rent does. Because only 27% of households rent, vacant units can take longer to lease, and location relative to employers or campuses matters more.
The payment side of the Warwick ratio
In Warwick the median tax bill for an owner-occupied home is $4,616, or about 1.30% of value (Rhode Island overall: 1.21%). That bill is close to the Rhode Island median of $4,900. In rent terms, the tax bill equals roughly 28% of twelve months of median rent.
For hazards, FEMA's National Risk Index puts Kent County at a relatively low overall rating, and its top-ranked hazards are hurricanes (relatively moderate), riverine flooding (relatively moderate) and ice storms (relatively moderate).
| Hazard in Kent County, FEMA index | Level |
|---|---|
| Lightning exposure | Relatively Moderate |
| Ice storms exposure | Relatively Moderate |
| Riverine flooding exposure | Relatively Moderate |
| Hurricanes exposure | Relatively Moderate |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Low |
In Kent County, as anywhere, the premium is part of PITIA, which means a quote with the roof, age and flood zone of the actual Warwick address belongs in your file early.
Running the numbers in Warwick
Take the median rent ($1,363), subtract median taxes spread over twelve months ($385), and you have $978 of room at a 1.00 ratio. A lender asking for 1.25 cuts that to $706. Real quotes for the address decide the rest.
Rental rules for Warwick, RI
Rental registration, inspection and nightly-stay rules differ by city, and we have not verified Warwick's from a municipal source. A short call to the city and Kent County before you make an offer is cheap insurance. On lodging taxes, a Warwick host should read this first. 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.
Deposits come due back within 20 days of the tenant leaving, and Warwick owners should document condition at both ends of the lease. Rent regulation: No statewide rent cap found in Chapter 34-18.
Where Warwick sits among nearby places
Of the cities listed, Bristol is the most expensive ($485,000 median value) and West Warwick the least ($330,800); Warwick sits at $354,600.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Bristol | 34% | $5,393 | $485,000 | 22,220 | $1,579 |
| East Providence | 40% | $4,545 | $365,500 | 47,281 | $1,288 |
| Cranston | 32% | $5,103 | $378,300 | 83,250 | $1,375 |
| West Warwick | 43% | $4,962 | $330,800 | 31,173 | $1,303 |
| Warwick | 27% | $4,616 | $354,600 | 83,175 | $1,363 |
What fills Warwick rentals
Self-employment accounts for 7.8% of Warwick's workforce, so many local investors earn income that a standard payroll-based mortgage underwrites poorly. Other workforce markers: government workers are about 13% of employment, 34% of adults hold a bachelor's degree or higher and 12% of commuters travel 45 minutes or more.
Campuses such as Community College of Rhode Island and University-preparatory school pull tenants into Warwick, and landlords near them can plan around move-in seasons. Warwick offers interstate access via I-95 and I-295 and air service through T. F. Green Airport and Logan International Airport, details that affect commute times and how easily a distant investor can inspect a property.
Putting a Warwick file together
Before you offer on a Warwick property, test the ratio in the calculator, then apply now or request a DSCR quote.
More Rhode Island markets
- All Rhode Island DSCR loans
- DSCR loans in West Warwick, RI
- DSCR loans in Cranston, RI
- DSCR loans in East Providence, RI
- DSCR loans in Bristol, RI
- Every market we cover
Where we checked
- Wikipedia: Warwick, Rhode Island
- Deposit statute: R.I. Gen. Laws 34-18-19(a)-(h)
- State rule cited for Warwick hosts: RI Division of Taxation, hotel tax
- Rhode Island tax source: RI DBR short-term rentals
- Census Bureau ACS 5-year 2020 to 2024 tables
- FEMA risk data used for Warwick
Numbers for Warwick come from the Census Bureau's 2020 to 2024 ACS and are survey estimates. Landlord rules for Warwick rest on Rhode Island statutes and the CC BY 4.0 RedFlagLease dataset. Reviewed in October 2026, with no promise that rules have stayed put.
Quick file checklist
Before you commit on a Warwick deal, confirm the rent with the lease or a market estimate, price the insurance for the exact address, and check how the taxes may change after the sale, so the ratio you run matches the one the lender calculates.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent do DSCR lenders use for a Warwick rental?
Underwriters take the lease if one exists and compare it with the appraisal's rent estimate; the lower figure often governs. Warwick median rent is $1,363.
What payment can a Warwick rent support?
They count in full. A 1.25 ratio on $1,363 of rent permits a payment near $1,090, and median Warwick taxes take about $385 of it each month.
How much real estate tax do Warwick homeowners pay a year?
About $4,616 a year at the median, which is 1.30% of value and close to the Rhode Island median of $4,900. Reassessment after a purchase can move that number, so get an estimate for the actual price.
Is short-term rental income allowed for a Warwick DSCR loan?
Yes on programs built for it, once the use is lawful in Warwick. Gather twelve months of statements or a third-party projection, and have Rhode Island tax registration squared away.
How much deposit can a Warwick landlord collect?
Landlords in Warwick follow R.I. Gen. Laws 34-18-19(a)-(h). Return deadline: 20 days from move-out.
What does FEMA say about hazard risk near Warwick?
At the county level FEMA calls overall risk relatively low. Insurance, not the index, shows up in the ratio, so price a policy for the Warwick address.
Is an entity required for a RI DSCR loan?
You do not need one, and many investors close in an entity. If you use an LLC, the lender asks for formation documents and usually a personal guaranty. Talk to your attorney and accountant about structure for a Rhode Island property.