Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA
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 | $2,320 |
| 1 Bedroom | $2,460 |
| 2 Bedrooms | $3,210 |
| 3 Bedrooms | $4,440 |
| 4 Bedrooms | $5,370 |
| 5 Bedrooms | $6,229 |
| 6 Bedrooms | $6,976 |
| 7 Bedrooms | $7,534 |
| 8 Bedrooms | $7,911 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,460 | $407,535 | 0.6% | D |
| 2BR | $3,210 | $524,586 | 0.61% | D |
| 3BR | $4,440 | $813,915 | 0.55% | F |
| 4BR | $5,370 | $996,706 | 0.54% | F |
| 5BR | $6,229 | $1,032,050 | 0.6% | D |
U.S. Census Bureau data (2024)
Ewa Beach (ZIP 96706) is a master-planned suburban community on the leeward coast of Oahu, characterized by newer single-family developments and a growing population of over 83,000 residents. The neighborhood offers a quieter, residential lifestyle compared to urban Honolulu, drawing families who prioritize newer housing stock and proximity to the ocean. While historically considered a commuter town, the presence of the Kapolei business district nearby—housing major employers like the Department of Hawaiian Home Lands and various state agencies—provides local economic stability and reduces pure dependency on the congested H-1 freeway commute for many residents.
The financial metrics reveal a challenging environment for voucher holders but opportunities for investors. The HUD FY2026 Fair Market Rent for a 2-bedroom unit is set at $3,160, which sits $219 below the current Zillow market rent of $3,379. This gap suggests that voucher holders may face minor top-up requirements or limited options in premium units. However, investors see long-term value in median home prices of $830,536 and a specific 2-bedroom median sale price of $525,673. With properties sitting on the market for a median of 79 days, the area is not a rapid-flip market, but the high equity potential and consistent rental demand are clear.
The tenant pool is bolstered by a solid median household income of $129,456, even though the renter share is only 30.6%. This income level indicates that many working-class families can afford rents above the HUD SAFMR of $2,900, providing a safety net for landlords if voucher administration slows. Families are often attracted to the area for the highly rated public schools within the Leeward District and the expanding retail and dining amenities along Fort Weaver Road, which enhance the neighborhood’s livability and retention potential.
The Section 8 verdict for Ewa Beach leans toward appreciation and stability rather than immediate cash-flow maximization. The $219 negative gap between the 2-bedroom FMR ($3,160) and market rent ($3,379) is narrow enough to manage, particularly given the area’s high median income and family-oriented character. Investors should focus on acquiring properties priced near the $525,673 median for 2-bedroom units to maintain reasonable cap rates while banking on the neighborhood’s long-term growth and enduring demand for quality housing.
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.