Location: Kauai County, HI | Metro: Kauai County, HI
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,750 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $2,840 |
| 4 Bedrooms | $3,240 |
| 5 Bedrooms | $3,758 |
| 6 Bedrooms | $4,209 |
| 7 Bedrooms | $4,546 |
| 8 Bedrooms | $4,773 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,310 | $1,053,446 | 0.22% | F |
| 3BR | $2,840 | $879,720 | 0.32% | F |
| 4BR | $3,240 | $864,948 | 0.37% | F |
U.S. Census Bureau data (2024)
9.4% of the population in ZIP 96703, Kilauea, HI, are renters, indicating a modest demand for rental properties. The $936,466 median home value suggests that this area is predominantly residential with higher-end homes, which could limit the number of affordable rental units available. Landlords and small-portfolio investors should note that the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $2,010, providing a benchmark for rental pricing that aligns closely with the $2,015 market rent reported by the Census ACS. This parity between FMR and market rent implies a stable rental environment where Section 8 vouchers can effectively cover the cost of housing.
$98,214 is the median income in the area, which is important to consider when assessing the financial viability of tenants. While the median income is relatively low compared to the median home value, it aligns well with the FMR and market rent figures, suggesting that tenants with Section 8 vouchers can afford to live in the area without significant financial strain. The lack of data on days on market (DOM) and the percentage of price-cut shares indicates either a robust market where homes sell quickly or a limited sample size, but does not necessarily reflect negatively on the rental market.
The alignment of the $2,010 FMR with the $2,015 market rent makes ZIP 96703 a viable option for landlords participating in the Section 8 program. The modest renter share of 9.4% means competition among landlords for tenants might be lower, but also highlights the importance of maintaining affordable rental units to cater to the local need. Given the stable pricing and reasonable income levels, landlords can expect steady cash flow and minimal vacancy rates when renting to Section 8 participants.
Verdict: ZIP 96703 is a solid investment for Section 8 landlords due to the close match between FMR and market rent, ensuring consistent tenant support and landlord profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.