Real Estate Investing in Middletown, Rhode Island (02842)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 02842 (Middletown, 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: 12.8% of homes vacant — above national norms.
What’s happening in Middletown, RI (02842)?
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Market Analysis: 02842 Middletown
Investors eyeing 02842 need to respect the fundamentals at play. Home values of $766K come alongside slower price movement and elevated management overhead.
The investment case in 02842 is impressive only for operators who understand what they are buying. A $766K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Within RI, ZIP 02842 trails on several market indicators that neighboring Newport County submarkets outperform. The gap is real and resilient enough to shape underwriting.
Who lives in 02842 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
seems to the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Middletown:
Property Strategy for 02842
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $513,952 | $1,750 | 2.5% | +8.4% | $513,952 |
| 2BR | $612,160 | $2,290 | 2.7% | +10.5% | $306,080 |
| 3BR | $705,533 | $3,100 | 3.2% | +10.3% | $235,178 |
| 4BR | $944,312 | $3,560 | 2.7% | +11.0% | $236,078 |
| 5BR | $1,429,032 | — | — | +11.9% | $285,806 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 02842 Compare?
| Metric | 02842 | Middletown | Rhode Island |
|---|---|---|---|
| Home Value | $766,307 | $766,307 | $487,363 |
| 5-Year CAGR | 7.4% | 7.4% | 8.8% |
| Avg Rent | $3,214 | $3,214 | - |
| Cap Rate | 3.3% | 3.3% | - |
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 02842 (Middletown, RI). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $766,307 |
| Monthly Rent | $3,214 |
| Price-to-Rent | 19.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.0% |
| Cap Rate | 3.3% |
| 5-Year IRR | 10.6% |
📈 Home Appreciation
| 1-Year | +5.9% ▲ |
| 3-Year CAGR | +5.7% ▲ |
| 5-Year CAGR | +7.4% ▲ |
| 10-Year CAGR | +7.9% ▲ |
🏠 Rent Trends
| 1-Year | +13.9% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.3%). 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 02842
Population: 16,920
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 02842
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
What real estate strategy is ideal for Middletown, RI?
In Middletown, RI the resilient play is typically careful cash-flow rentals with hands-on management. The combination of $766K prices and $3,214/mo rents suits that approach.
Can owner-occupants cash flow in Middletown, RI?
House hacking works a challenging in Middletown, RI. Rents of $3,214/mo against $766K acquisition make the strategy solid for owner-occupants.
How much do tenants pay in Middletown, RI?
Middletown, RI rentals go for roughly $3,214/mo a month. That puts gross yield in solid territory relative to $766K acquisition costs.
What is the rental occupancy rate in Middletown, RI?
Vacancy in Middletown, RI is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $3,214/mo.
How much should I expect to pay for a home in Middletown, RI?
Homes in Middletown, RI typically sell near $766K. Prices have moved at a 0.0% 5-year CAGR, which reliable long-term demand.
You know 02842 now. You don’t know where it ranks.
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How 02842 ranks in Providence-Warwick, RI-MA
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