Fall River, MA, is a goldmine for real estate investors chasing high returns on rental properties. With the MBTA commuter rail connecting the city to Boston and vibrant waterfront development along the Taunton River, Fall River blends affordability with explosive growth potential. At Fortified Realty Group, we’ve analyzed 21 years of multi-family sales data (2004–2025), encompassing 5,220 transactions, to reveal the ROI potential for 2–4 unit and 5+ unit rental properties. Whether you’re a first-time buyer leveraging an FHA loan or a seasoned investor targeting commercial properties, Fall River’s rental market is calling. Let’s explore the numbers and why 2025 is your year to invest.
Why Fall River For Rental Investments?
Fall River’s real estate market shines due to:
- MBTA Commuter Rail: The South Coast Rail, linking Fall River to Boston in under 90 minutes, drives rental demand near stations like Battleship Cove.
- Waterfront Development: Revitalization projects are turning the Taunton Riverfront into a hub for professionals and families, boosting property values.
- Affordable Prices: Compared to Greater Boston’s $658,200 median home price, Fall River’s $473,333 median offers lower entry points, maximizing ROI.
Our analysis of 5,220 multi-family sales from January 1, 2004, to June 9, 2025, shows strong price appreciation, fueling high ROI for rental property owners. Below, we break down the Compound Annual Growth Rate (CAGR) for 2–4 unit and 5+ unit properties, highlighting their investment potential.
CAGR: Unlocking Price Appreciation
CAGR measures the annual growth rate of property prices, a critical component of ROI through capital appreciation. The table below, based on Fall River’s multi-family sales, shows CAGRs for 2–4 unit and 5+ unit properties across various periods, from 21 years to the trailing 12 months.
|
Time Period |
2–4 Unit CAGR |
5+ Unit CAGR |
|
21 Years (2004–2025) |
4.06% |
4.93% |
|
15 Years (2010–2025) |
9.25% |
11.08% |
|
10 Years (2015–2025) |
11.55% |
14.11% |
|
7 Years (2018–2025) |
10.20% |
13.05% |
|
5 Years (2020–2025) |
9.00% |
13.44% |
|
3 Years (2022–2025) |
4.79% |
9.27% |
|
2 Years (2023–2025) |
9.03% |
14.17% |
|
Trailing 12 Months (2024–2025) |
3.40% |
11.16% |
Key Takeaways For ROI
- 2–4 Unit Properties: Accessible with FHA loans (3.5% down), these properties show strong 10-year growth (11.55% CAGR), perfect for buyers on Snell Street, which had a CAGR of 15.87% beating the average Fall River return by 4.32%. The recent 3.40% trailing 12-month CAGR suggests a cooling market, creating 2025 buying opportunities.
- 5+ Unit Properties: Commercial properties excel, with a 14.17% CAGR over 2 years and 11.16% in the trailing 12 months. The 13.44% 5-year CAGR underscores their appeal for investors targeting high yields near the waterfront.
ROI Breakdown For Fall River Rentals
ROI combines cash flow (rental income minus expenses) and capital appreciation. Here’s how Fall River performs:
Cash Flow
- 2–4 Unit Properties: The 2024 average sale price was $616,113. A 3-unit building renting at $1,500/unit/month (common on Snell Street) generates $54,000 annually. After 30% expenses (taxes, insurance, maintenance), net operating income (NOI) is ~$37,800. With a 20% down payment ($123,223) and a 6.5% 30-year mortgage (~$3,000/month), annual cash flow is ~$1,800, yielding a 1.46% cash-on-cash return. Owner-occupiers using FHA loans can live in one unit, slashing mortgage costs and boosting ROI significantly. Per unit sales prices are higher in 2-4 unit buildings due to the much larger buyer pool utilizing FHA and other lower than 25% down payment loans.
- 5+ Unit Properties: The 2024 average sale price was $839,885. A 6-unit building at $1,500/unit/month yields $108,000 annually. After 30% expenses, NOI is ~$75,600. With a 25% down payment ($209,971) and a 7% commercial loan (~$4,500/month), annual cash flow is ~$21,600, delivering a 10.28% cash-on-cash return. More units amplify cash flow, especially in high-demand areas.
Capital Appreciation
CAGRs highlight strong price growth:
- A 2–4 unit property bought in 2015 for $213,446 could be worth $637,039 in 2025 (11.55% CAGR), adding $423,593 in equity.
- A 5+ unit property purchased in 2015 for $249,333 could hit $933,650 (14.11% CAGR), gaining $684,317.
Total ROI
Blending cash flow and appreciation, 5+ unit properties often yield over 20% annual ROI, driven by high cash flow and 11–14% appreciation. 2–4 unit properties offer lower cash flow but shine for FHA buyers, especially owner-occupiers, with total ROI often exceeding 10%, particularly on streets like Snell Street.
Is The Market Slowing?
Recent trends show:
- 2–4 Units: The 3.40% trailing 12-month CAGR (down from 9.03% over 2 years) signals a slowdown, likely due to higher interest rates. This creates a buyer’s market in 2025, especially near Palmer Street, where a 2-year CAGR of 8.16% reflects slower price growth, offering opportunities for FHA buyers to secure deals.
- 5+ Units: The 11.16% trailing 12-month CAGR remains robust, though below the 14.17% 2-year peak. Demand near MBTA stations and the waterfront keeps growth strong.
This cooling, particularly for 2–4 units, offers a window to secure deals before potential rate cuts or MBTA-driven demand spark price surges in 2026.
Bonus Nugget: Best And Worst Times To Buy
To maximize CAGR, timing is key. Based on our data (2004–2025):
2–4 Unit Properties:
- Best Year to Buy: 2011 ($159,000 average price, 14.90% CAGR to 2025). Post-recession lows offered bargains, especially near Snell Street.
- Worst Year to Buy: 2006 ($317,098 average price, 3.39% CAGR to 2025). Pre-crash peak prices led to lower returns.
5+ Unit Properties:
- Best Year to Buy: 2010 ($189,250 average price, 17.21% CAGR to 2025). Recession-era deals near the waterfront yielded stellar gains.
- Worst Year to Buy: 2006 ($391,660 average price, 4.26% CAGR to 2025). High prices before the crash minimized returns.
Today’s cooling market mirrors 2010–2011, suggesting 2025 could be a prime time to buy, especially for 2–4 unit properties on streets like Palmer Street.
Why Fortified Realty Group?
Fortified Realty Group LLC is your partner in Fall River’s multi-family market. We offer:
- Expertise in high-ROI properties near the MBTA and waterfront.
- Guidance for FHA buyers targeting 2–4 unit buildings.
- Connections for commercial investors seeking 5+ unit cash cows.
Ready to unlock Fall River’s rental potential? Visit www.fortifiedrealty.net or contact Fortified Realty Group today to find your 2025 investment gem.
Disclaimer
All prices and examples are for illustrative purposes. While actual sales data was used, AI was used to assist with data interpretation, and there could be resulting errors. None of the information in this blog should be construed as financial advice. If you would like specific information tailored to your situation, please reach out to us to schedule a consultation.
