Section 8 Fair Market Rent (FMR) for ZIP 96701 - 2027

Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA

Investment Score for ZIP 96701

Monthly Rent (2BR)

$2,360

Median Price (2BR)

$465,678

1% Rule

0.51%

Annual Yield

6.08%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,700
1 Bedroom	$1,810
2 Bedrooms	$2,360
3 Bedrooms	$3,270
4 Bedrooms	$3,940
5 Bedrooms	$4,570
6 Bedrooms	$5,118
7 Bedrooms	$5,527
8 Bedrooms	$5,803

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,810	$347,606	0.52%	F
2BR	$2,360	$465,678	0.51%	F
3BR	$3,270	$954,226	0.34%	F
4BR	$3,940	$1,252,735	0.31%	F
5BR	$4,570	$1,369,735	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

39,200

Median Household Income

$111,173

Housing Units

15,276

Renter Percentage

30.3%

Occupancy Rate

94.2%

Renter Occupied

4,362

If a landlord is considering purchasing a property in ZIP 96701 (Aiea, HI) for Section 8 investment, they should follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for ZIP 96701 in fiscal year 2024 is $2320. To determine if this amount clears debt service on an $831,966 property, calculate the DSCR. Assuming a typical mortgage rate of 4%, the annual debt service would be approximately $41,918. The monthly income from a single Section 8 tenant would cover the debt service, but the number of units in the property must be considered. For a multi-unit property, each unit's rental income must exceed its share of the debt service.

Step 2: Market Rent Comparison

The Zillow Observed Rental Index (ZORI) for Aiea, HI, indicates that the average market rent is $2,461. This is slightly above the FMR of $2320. Landlords can charge the higher market rate for non-Section 8 tenants, which could provide a buffer against potential delays in voucher payments or other risks associated with the program.

Step 3: Demand Analysis

Aiea has a rental population of 30.3%. With a Days on Market (DOM) of 48 days, there is moderate demand for rental properties. This suggests that landlords can expect reasonable occupancy rates, but competition for tenants exists.

Yes: If the landlord is comfortable with the FMR covering their debt service and the slight premium over FMR in market rents, combined with moderate demand, makes the investment viable.
No: If the landlord requires higher rental income to cover expenses or sees the moderate demand as too risky.
It Depends: On the landlord's risk tolerance, the size of the property, and whether they plan to rely solely on Section 8 tenants or diversify their tenant base with market-rate renters.

The key metrics for ZIP 96701 are as follows:

Fair Market Rent (FMR): $2320 per month.
Zillow Observed Rental Index (ZORI): $2,461 per month.
Rental Population: 30.3%.
Days on Market (DOM): 48 days.

Based on these factors, landlords can make an informed decision about investing in Aiea, HI, for Section 8 properties.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.