Report says RIers pay more in bills than the national average. Here's how we stack up.

• The Federal Trade Commission is suing the company that put out the report over allegations of misleading search ads.
• The average rent figures appear to be out of whack.

How expensive is it to just live in Rhode Island?

According to a new report from the bill payment company Doxo, it's 16% more expensive than the national average, with rent soaking up most of residents' income.

While some of the numbers are interesting, including the bill that nearly everyone in the state pays (phones service), some of the figures appear to be wildly off base.

Why it matters: While the majority of attention is given to the cost of housing – whether it's rent or mortgage payments – it is just one big slice of the bills Rhode Islanders pay every month.

The HousingWorksRI's 2023 Housing Fact Book finds that one-third of Rhode Islanders are housing cost burdened, meaning they pay more than 30% of their income for housing and utilities.

A household's expenses are also important when trying to buy a house, something that is increasingly difficult for first-time home buyers who aren't making huge salaries. That's because lenders look at a person's "debt-to-income ratio" (monthly debts divided by gross monthly income). Most lenders won't extend a loan if the ratio is above 45%.

What's new: The report by Doxo puts the amount Rhode Islanders spend per month on all bills at $2,469, which is 16% above the national average.

• $2,469 a month means $29,628 a year.
• It makes Rhode Island the 11th most expensive state for bills.

The top-line numbers: Rhode Islanders are about just as likely to have a car loan as they are to pay rent or pay a mortgage.

• Yearly, Rhode Islanders spend
• than the country's average.
• Household bills account for 35% of annual income, with income pegged at $83,651. More on that number below.
• 77% of residents have a car loan, spending an average of $506 monthly.
• 81% pay auto insurance, $280 monthly, 55% of the average monthly loan payment.

Housing costs: Not everyone has housing costs, so these totals will not equal 100%.

• 42% of people are paying a mortgage.
• That mortgage is, on average, $1,912.
• 36% of people pay rent.
• That rent is, on average, $1,277 a month.

Today and yesterday's mortgage rate: Interest rates have risen dramatically over the rates for the past 20 years, as has the median price of housing.

• At today's interest rate near 7%, a $1,912 mortgage buys about a $300,000 house.
• At the rate for about the last 20 years, near 4%, a $1,912 mortgage bought about a $400,000 house.
• In 2019, the median house price was $250,000, while now it is $460,000.

Utilities: On average, per the report, Rhode Island sees lower monthly utility payments than the rest of the country.

• 78% of Rhode Islanders pay an average of $328 a month for utilities (gas, water, electric, phone/internet, etc.) lower than the $362 average for the country. Rhode Island has the sixth highest electricity prices in the country.
• 90% pay a monthly phone bill, an average of $113 a month.
• 50% pay a TV/internet bill of $112 a month.

Are these numbers really right? If you've been reading the extensive coverage of the housing market in Rhode Island by The Providence Journal and other media outlets, some of the Doxo's numbers look off.

• Doxo pegs the average income at $83,651.
• The Fiscal Year 2024 Department of Housing and Urban Development Area Median Income, or AMI standards, the only standard for how much people make in the state, puts it at $78,750, while for a two-person household it's $89,920.

Where can I rent something for $1,277 a month? It's not clear where that number came from, or from what time frame.

• The average rent of $1,277, below the national average of $1,300, appears to be wildly off.
• HousingWorksRI's 2023 Housing Fact Book put the statewide average for a two-bedroom apartment at $1,996.
• The Fact Book put the average two-bedroom rent in 2017 at $1,869, well before the run-up in rents during the pandemic.
• An April report by rent.com put Providence's median rent at $2,743, marking a 16% year-over-year increase.
• Rhode Island's cheapest town in which to rent, Burrillville, has a rental payment of $1,026, per the Fact Book.

A little more context: The bill payment company putting out the report, Doxo, is being sued by the Federal Trade Commission over allegations that it "uses misleading search ads to impersonate consumers' billers and deceptive design practices to mislead consumers about millions of dollars in junk fees they tacked on to consumers' bills." The FTC filed that lawsuit in April.

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Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter