Real Estate Investing in Newport, Rhode Island (02840)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 02840 (Newport, RI)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 21.8% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 25.5 — hard to cash-flow at these prices.
What’s happening in Newport, RI (02840)?
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Market Analysis: 02840 Newport
This part of Newport County is not an easy win. The 02840 ZIP registers softness in key indicators, and the playbook that works in cleaner markets often stalls here.
For an experienced owner, 02840 can be a a credible choice for hunting ground — but the discount at $966K reflects genuine risk that outside investors often underestimate.
Statewide comparisons place 02840 among RI's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Looking more closely, 23,615 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
Experienced landlords with local relationships tend to find 02840 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Newport:
Property Strategy for 02840
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $507,279 | $1,810 | 2.6% | +11.1% | $507,279 |
| 2BR | $722,830 | $2,380 | 2.4% | +10.0% | $361,415 |
| 3BR | $949,276 | $3,220 | 2.4% | +10.6% | $316,425 |
| 4BR | $1,250,260 | $3,700 | 2.1% | +11.4% | $312,565 |
| 5BR | $2,377,280 | — | — | +12.2% | $475,456 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 02840 Compare?
| Metric | 02840 | Newport | Rhode Island |
|---|---|---|---|
| Home Value | $966,328 | $483,164 | $487,363 |
| 5-Year CAGR | 7.5% | 7.5% | 8.8% |
| Avg Rent | $3,156 | $3,156 | - |
| Cap Rate | 2.6% | 2.6% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 02840 (Newport, RI). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $966,328 |
| Monthly Rent | $3,156 |
| Price-to-Rent | 25.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.6% |
| 5-Year IRR | 10.0% |
📈 Home Appreciation
| 1-Year | +10.1% ▲ |
| 3-Year CAGR | +6.6% ▲ |
| 5-Year CAGR | +7.5% ▲ |
| 10-Year CAGR | +8.4% ▲ |
🏠 Rent Trends
| 1-Year | +7.1% ▲ |
| 3-Year CAGR | +7.1% ▲ |
| 5-Year CAGR | +8.6% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.6%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 02840
Population: 23,615
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 02840
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
Is it easy to find good tenants in Newport, RI?
The tenant pool in Newport, RI is solid, supported by local employment and population fundamentals. Rents of $3,156/mo are well-absorbed by the market.
What is it like being a landlord in Newport, RI?
Newport, RI falls under RI landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
Do rentals sit vacant long in Newport, RI?
Newport, RI carries elevated vacancy risk. Expect reliable absorption at market rents of $3,156/mo.
Can owner-occupants cash flow in Newport, RI?
House hacking in Newport, RI is reasonable to execute. Prices around $966K and rents of $3,156/mo solid owner-occupant economics.
How much should I expect to pay for a home in Newport, RI?
In Newport, RI the median home value sits at $966K. Against the broader RI market, that reads as reasonable for most investors.
You know 02840 now. You don’t know where it ranks.
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How 02840 ranks in Providence-Warwick, RI-MA
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