Location: Hawaii County, HI | Metro: Hawaii 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 | $2,040 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,340 |
| 4 Bedrooms | $3,710 |
| 5 Bedrooms | $4,304 |
| 6 Bedrooms | $4,820 |
| 7 Bedrooms | $5,206 |
| 8 Bedrooms | $5,466 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,060 | $225,035 | 0.92% | C |
| 2BR | $2,650 | $371,266 | 0.71% | D |
| 3BR | $3,340 | $589,732 | 0.57% | F |
| 4BR | $3,710 | $766,884 | 0.48% | F |
| 5BR | $4,304 | $1,014,209 | 0.42% | F |
U.S. Census Bureau data (2024)
Captain Cook, HI, with a ZIP code of 96704, is a small coastal community situated on the island of Hawaii. The neighborhood has a total population of 7,261 residents, where 21.9% are renters. This indicates a primarily owner-occupied area, with a modest rental market presence. The median household income stands at $86,941, reflecting a relatively affluent community. The median home value is notably high at $452,610, which suggests a strong property market and a preference for homeownership among residents.
Turning to the economic specifics of renting, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $2,550. In comparison, the actual market rent, according to the Census American Community Survey, is $2,053. This discrepancy between the FMR and the market rent offers insight into potential opportunities for landlords operating under the Section 8 program. Landlords can expect to receive higher rents through vouchers compared to the current market rate, which could be beneficial for maintaining profitability and covering costs associated with property management.
Given these factors, ZIP 96704 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the difference between the FMR and the market rent provides a margin that ensures steady cash flow without requiring active involvement in tenant selection or rent negotiation. On the other hand, value-add buyers might find opportunities to improve properties and charge closer to the FMR, leveraging the higher voucher payments to enhance returns. However, it's important to note that the success of either strategy depends on understanding local regulations and the dynamics of the rental market in Captain Cook, HI.
To summarize, the demographic and economic profile of Captain Cook, HI, presents a favorable environment for Section 8 investments. With a median income of $86,941 and a median home value of $452,610, the area is well-positioned for stable rental operations. The gap between the FMR of $2,550 and the market rent of $2,053 further supports the viability of Section 8 participation, offering landlords a clear path to manage their properties effectively, whether they prefer a passive or an active role in the investment process.
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.