Only Newport achieves affordable housing threshold

Only Newport among Newport County communities achieves the state’s goal of 10 percent housing classified as affordable, despite the state legislature’s creative revision to how it counts affordable housing units.

That revision was meant to add housing units to those counted as “low and moderate income,” but still only eight of Rhode Island’s 39 cities and towns reach the 10 percent threshold, according to Housing Works RI’s recently released 2025 Housing Fact Book.

Besides Newport, which is second highest at 17.27 percent, the other municipalities reaching the state goal are Burrillville (10.19 percent), Central Falls (17.76 percent), East Providence, (10.64 percent), Pawtucket (10.41 percent), Providence (16.59 percent), West Warwick (10.6 percent), and Woonsocket (17.09 percent).

What changed this year is the state now counts households that use rental vouchers and some mobile homes among affordable housing. Still, the HousingWorks report says “these changes do not mean that more affordable homes have been created. The state’s goal of 10 percent affordable housing per municipality has not changed, but the definition of compliance has expanded.”

Here’s a look at how close Newport County municipalities are to reaching the 10 percent threshold: Jamestown, 4.2 percent, 152 units short of the 10 percent goal;  Little Compton, 0.65 percent, 159 units short of the 10 percent goal; Middletown, 6.13 percent, 291 units short of the 10 percent goal; Portsmouth, 3.5 percent, 498 units short of the 10 percent goal; and Tiverton, 6.01 percent, 299 units short of the 10 percent goal.

Here are some other significant findings in this year’s Housing Fact Book:

• More than a third of the state’s households (142,920) pay more than 30 percent of their income toward housing costs. Being cost burdened is defined as paying more than 30 percent of your income on housing costs. Of the households defined as housing burdened, 66,237 or 44 percent are severely cost burdened, paying at least half their income on housing costs.
• More than a third of Black (35 percent) and Hispanic (39 percent) homeowners are cost burdened. That compares to White (24 percent) and Asian (19 percent).
• Rhode Island is among 11 states where the population of those 65 or older exceeds the under 18 population, raising the need to develop more senior housing.
• There is not a single municipality in Rhode Island “where a household earning the median homeowner income of $112,858” can afford to buy a home. Pawtucket, at median income of $128,635, is the lowest in Rhode Island.
• There is not a single municipality in which a household earning the median household renter income of $48,434 can afford the average two-bedroom apartment.

Here’s a look at some of the findings for each of the Newport County municipalities:

• JAMESTOWN
  • Median Family Home Price: $1,157,500
    • Monthly housing payment: $8,927.
    • Income needed to afford this: $357,068.
    • Cost burdened households – 20 percent; cost burdened rental households – 57 percent (note-high margin of error).
    • Number of households below the Department of Housing and Urban Development’s area median income – 595.
• LITTLE COMPTON
  • Median Family Home Price: $936,750.
    • Monthly housing payment: $6,944.
    • Income needed to afford this: $277,754.
    • Cost burdened households – 27 percent; cost burdened rental households – 50 percent (note-high margin of error).
    • Number of households below the Department of Housing and Urban Development’s area median income – 350.
• MIDDLETOWN
  • Median Family Home Price: $725,000.
    • Monthly housing payment: $5,661.
    • Income needed to afford this: $226,456.
    • Cost burdened households – 34 percent; cost burdened rental households – 50 percent. 
    • Number of households below the Department of Housing and Urban Development’s area median income – 2,885.
• NEWPORT
  • Median Family Home Price: $1,000,000.
    • Monthly housing payment: $7,691.
    • Income needed to afford this: $307,638.
    • Cost burdened households – 30 percent; cost burdened rental households – 59 percent (note-high margin of error).
    • Number of households below the Department of Housing and Urban Development’s area median income – 4,435.
• PORTSMOUTH
  • Median Family Home Price: $670,000.
    • Monthly housing payment: $5,486.
    • Income needed to afford this: $219,420.
    • Cost burdened households – 22 percent; cost burdened rental households – 40 percent.
    • Number of households below the Department of Housing and Urban Development’s area median income – 2,300.
• TIVERTON
  • Median Family Home Price: $457,000.
    • Monthly housing payment: $3,729.
    • Income needed to afford this: $149,159.
    • Cost burdened households – 21 percent; cost burdened rental households – 36 percent. 
    • Number of households below the Department of Housing and Urban Development’s area median income – 2,180.