# Rhode Island mortgages: the conveyance tax, RIHousing help and monthly costs

> Rhode Island home buying numbers: the higher 0.75% conveyance tax, what the median home costs a month and RIHousing’s $15,000 down-payment loan.

URL: https://mortgage-math-us.com/location/rhode-island/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

The median Rhode Island home is valued at $455,700; with 10% down at the 7.24% national average rate it costs about **$3,593 a month** with property tax and insurance. Since October 1, 2025 the state’s realty conveyance tax is 0.75% of the price — about $3,418 on that home — with a second tier on residential value above $800,000. First-time buyers can borrow $15,000 at 0% for the down payment through RIHousing’s 15kDPA, repaid only when they sell or move out.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median home value | $455,700 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US44) | 2024 ACS 1-year |
| Median household income | $83,504/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US44) | 2024 ACS 1-year |
| Effective property tax rate | 1.07% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US44) | 2024 ACS 1-year |
| Realty conveyance tax | 0.75% | [Rhode Island Division of Taxation](https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-08/NOTICE_2025-05_Conveyance_Tax_Increase.pdf) | Aug 21, 2025 |
| Second conveyance tier above | $800,000 | [RI Division of Taxation: Notice 2025-05](https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-08/NOTICE_2025-05_Conveyance_Tax_Increase.pdf) | Aug 21, 2025 |
| RIHousing 15kDPA | $15,000 | [RIHousing: 15kDPA](https://www.rihousing.com/homebuyers/15k-dpa/) | Apr 30, 2026 |
| RIHousing price limit (bond loans) | $915,883 | [RIHousing: Homebuyers](https://www.rihousing.com/homebuyers/) | Oct 29, 2026 |

## Rhode Island’s higher conveyance tax

The realty conveyance tax is collected when the deed is recorded. On October 1, 2025 the rate rose to 0.75% of the price, the 8th-highest statewide rate among the states and DC, and a second tier now adds the same rate again on the part of a residential price above $800,000.

> **Worked example: Conveyance tax at two prices**
>
> - Median-value home, $455,700: $455,700 × 0.75% ≈ **$3,418**.
> - A $950,000 home: $7,125 on the full price plus $1,125 on the $150,000 above $800,000 = **$8,250**.

Your purchase and sale agreement should say which side pays it. Buyers also cover lender fees, title insurance, recording and prepaid items; the CFPB’s 2%–5% rule of thumb works out to $9,114–$22,785 on the median home. The [closing cost estimator](https://mortgage-math-us.com/tools/closing-cost-calculator/?state=RI) includes the new rates.

## What the median Rhode Island home costs

> **Worked example: $455,700 home, 10% down, 30-year fixed at 7.24%**
>
> | Part of the payment | Monthly |
> |---|---:|
> | Principal and interest on $410,130 | $2,795 |
> | Property tax at 1.07% a year | $406 |
> | Homeowners insurance at the national $4.90 per $1,000 (Freddie Mac) | $186 |
> | PMI (midpoint of Freddie Mac’s range) | $205 |
> | **Total** | **$3,593** |
> 
> Coastal homes may need flood insurance on top, and older homes can cost more to insure. Rerun it with your quote in the [payment calculator](https://mortgage-math-us.com/tools/mortgage-payment-calculator/?price=456000&down=10&tax=1.07&state=RI).

## A first-time buyer at the median income

The median Rhode Island household earns $83,504. Spending Freddie Mac’s 30% of that on housing leaves $2,088 a month, which supports about **$265,000** with 10% down — $190,700 below the median value; buying the median home that way takes roughly $144,000 a year. If you can’t bring 10%, here is the same budget with the $15,000 15kDPA as the only down payment.

*$265,000 home with a $15,000 15kDPA down payment (5.7% down), 30-year fixed at 7.24%*

| Part of the payment | Monthly |
|---|---:|
| Principal and interest on $250,000 | $1,704 |
| Property tax at 1.07% | $236 |
| Insurance at the national $4.90 per $1,000 | $108 |
| PMI | $125 |
| 15kDPA (no monthly payment) | $0 |
| **Total** | **$2,173** |

The smaller down payment pushes the monthly cost above the $2,088 budget; lenders look at your full debt-to-income ratio rather than one rule of thumb. Test other combinations in the [affordability calculator](https://mortgage-math-us.com/tools/affordability-calculator/?state=RI&income=83504).

## RIHousing programs

Rhode Island Housing (RIHousing) lends through participating lenders and its own Loan Center. Its first-time buyer loans can finance the full price, and every first-time buyer must take a homebuyer education class before closing.

*RIHousing down-payment help (checked Oct 2026)*

| Program | Amount | Terms | Minimum score |
|---|---|---|---|
| 15kDPA | $15,000 | 0% interest, no monthly payments; repaid when you sell, transfer or stop living in the home | 660 |
| Extra Assistance | Up to $20,000 (capped at a share of the price) | Second mortgage at your first-mortgage rate, repaid over 15 years | Lower than 15kDPA’s |

Both are for first-time buyers of one- to four-family homes or condos used as a primary residence. For loans funded by mortgage revenue bonds, the purchase price can’t exceed $915,883 — the median home is well under that. Loan Center income limits vary by area; in the Providence area a one- or two-person household can earn up to $134,520, and the state’s median household income is below that. Participating lenders can serve eligible buyers at any income. RIHousing also runs a first-generation pilot in one Newport neighborhood. More on stacking help in the [down-payment grants guide](https://mortgage-math-us.com/first-time-buyers/grants/).

## Old houses and town-by-town tax bills

Half of Rhode Island’s homes were built before 1964, the 3rd-oldest housing stock among the states and DC. Older homes can hide lead paint, aging heating systems and outdated wiring; make the offer contingent on an [inspection](https://mortgage-math-us.com/buying/appraisal-and-inspection/) and price any work before you choose a down payment.

Property tax is set by each city and town. The median bill is $4,886 a year, the 9th-highest among the states and DC, and the effective rate of 1.07% is above the US 0.89%. Ask the local assessor whether the town offers a homestead exemption for owner-occupied homes and how to file for it.

## Frequently asked questions

### What is the conveyance tax in Rhode Island?

Since October 1, 2025 it is 0.75% of the price, plus the same rate again on residential value above $800,000. On a median-value $455,700 home that comes to about $3,418.

### Does Rhode Island have down payment assistance?

Yes. RIHousing’s 15kDPA lends first-time buyers $15,000 at 0% with no monthly payments, and Extra Assistance offers up to $20,000 as a second mortgage repaid over 15 years.

### What credit score do I need for RIHousing’s 15kDPA?

At least 660. You must also be a first-time buyer, meet RIHousing’s price and income limits and complete a homebuyer education course.

### Is the 15kDPA forgivable?

No. It is a 0% loan with no monthly payments, but the full amount is due when you sell or transfer the home or stop living in it as your primary residence.

### What is the property tax rate in Rhode Island?

Census data put the median bill at $4,886 a year, about 1.07% of median home value. Each city and town sets its own rate.

### How much income do I need to buy a house in Rhode Island?

For the median $455,700 home with 10% down at today’s average rate, keeping housing under 30% of gross income takes roughly $144,000 a year.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US44) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US44) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US44) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [RI Division of Taxation: Notice 2025-05](https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-08/NOTICE_2025-05_Conveyance_Tax_Increase.pdf) — Rhode Island conveyance tax: second tier applies to residential value above; State real estate transfer tax (Aug 21, 2025)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- [RIHousing: 15kDPA](https://www.rihousing.com/homebuyers/15k-dpa/) — RIHousing 15kDPA (0% loan, no monthly payments); RIHousing 15kDPA minimum credit score (Apr 30, 2026)
- [RIHousing: Homebuyers](https://www.rihousing.com/homebuyers/) — RIHousing maximum purchase price, bond-financed first-time buyer loans; RIHousing Loan Center income limit, Providence area, households of one or two (Oct 29, 2026)
- [RIHousing: Extra Assistance](https://www.rihousing.com/homebuyers/extra-assistance/) — RIHousing Extra Assistance second mortgage, up to; RIHousing Extra Assistance second mortgage term (Apr 30, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=040XX00US44) — Median year homes were built (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [RIHousing: Homebuyers](https://www.rihousing.com/homebuyers/)
- [RIHousing: 15kDPA](https://www.rihousing.com/homebuyers/15k-dpa/)
- [RI Division of Taxation: Notice 2025-05, conveyance tax increase](https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-08/NOTICE_2025-05_Conveyance_Tax_Increase.pdf)

_General information, not financial advice._