Rhode Island cost of living
Can you afford to live in the Ocean State?
+1 more
A move to Rhode Island brings with it a unique blend of coastal charm, historic neighborhoods and a tight-knit sense of community. However, for anyone thinking about relocating, it is essential to take a close look at what everyday life will actually cost. Understanding these expenses can help families and individuals avoid surprises and manage their finances more effectively.
To determine the cost of living in Rhode Island, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Rhode Island spend $55,967 each year on goods and services, on average.
Jump to insightThe median rent in Rhode Island is $1,820, versus the national median rent of $1,639.
Jump to insightResidents in Rhode Island spend $255.86 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $3.03 in Rhode Island.
Jump to insightRecent data shows that employees in Rhode Island pay $1,699 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Rhode Island
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Rhode Island was $55,967 in 2023. This amount captures what Rhode Island residents typically pay each year for their homes, health needs, meals, transportation fuel and a range of other goods and services.
Here’s a breakdown of the largest spending categories in Rhode Island:
| Category | Annual per-capita cost in Rhode Island |
|---|---|
| Housing and utilities | $10,124 |
| Health care | $9,280 |
| Food and beverages for off-premises consumption | $4,518 |
| Gasoline and other energy goods | $961 |
| All other personal consumption expenditures | $31,085 |
| Total cost | $55,967 |
Housing costs in Rhode Island
For most households, housing is the single biggest expense. In Rhode Island, average rent comes in at $1,820, which is higher than the national average rent of $1,639. Where you choose to live and the type of home you need will greatly influence your monthly housing costs. According to the U.S. Census Bureau, typical rents in Rhode Island are:
- One-bedroom rent: $961
- Two-bedroom rent: $1,431
- Three-bedroom rent: $1,677
- Four-bedroom rent: $2,245
If homeownership is your goal, the median home price in Rhode Island is $525,100, which is noticeably higher than the U.S. median of $446,638. Property taxes are another factor to consider, with Rhode Island’s effective property tax rate at 1.05%.
» COMPARE: Best moving companies in Rhode Island
Food costs in Rhode Island
Your grocery budget in Rhode Island will depend on a variety of factors, including family size and shopping habits. On average, Rhode Islanders spend $255.86 per week on groceries, versus the U.S. average of $270.21.
The way you approach food shopping and dining will affect your overall costs. Families who stick to cooking at home, buy local ingredients or shop at discount grocers can keep expenses down. Those who dine out more often — especially in cities like Providence or near the coast — may find restaurant bills add up quickly. Smaller towns and less touristy areas tend to have lower prices for both groceries and dining.
Transportation costs in Rhode Island
Gas prices in Rhode Island are $3.03 per gallon, compared with the national average of $3.13. This means drivers in Rhode Island generally pay less for fuel than those in other states.
When it comes to auto insurance, Rhode Island residents face average premiums of $1,576.65, compared with a national average of $1,258. This can be an important factor for families who rely on cars for daily life.
Health care costs in Rhode Island
The typical employee contribution for employer-sponsored health coverage in Rhode Island is $1,699 per year. Employers pay the remaining $6,648 for a total premium of $8,347.
Nationally, the average employee contribution is $1,640 out of a total premium of $8,182. Health care costs in Rhode Island are slightly more than the national average, so it’s wise to account for this in your budget.
Utility costs in Rhode Island
The average monthly electric bill in Rhode Island is $149.78, compared with a national average of $136.84. Natural gas in Rhode Island costs $17.69 per thousand cubic feet, which is higher than the U.S. average of $12.92. High utility costs can make a noticeable difference in your monthly expenses, especially during the colder months.
FAQ
Does Rhode Island have a high cost of living?
Yes, Rhode Island has a somewhat high cost of living. While some expenses in the state — like housing and health care — are more expensive than in many states, gas prices are lower than what most Americans pay. You may also find that groceries are more affordable in Rhode Island than elsewhere.
Is Rhode Island a good place to live?
Yes, Rhode Island is a good place to live if you value strong communities, coastal access and a slightly lower overall cost of living than the U.S. average. While it isn’t among the most popular destinations for newcomers, the state provides a good balance for renters and people seeking a mix of urban and small-town life.
» RELATED: Best moving companies
Is Rhode Island good for renters?
Yes, Rhode Island is good for renters. Although rents are more expensive than in many other states and finding available properties can be challenging, Rhode Island offers some of the strongest tenant protections in the country.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
