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 | $2,100 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,720 |
| 3 Bedrooms | $3,420 |
| 4 Bedrooms | $3,800 |
| 5 Bedrooms | $4,408 |
| 6 Bedrooms | $4,937 |
| 7 Bedrooms | $5,332 |
| 8 Bedrooms | $5,599 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,720 | $808,694 | 0.34% | F |
| 3BR | $3,420 | $754,135 | 0.45% | F |
| 4BR | $3,800 | $1,133,599 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 96719, located in Hawi, HI, within Hawaii County, represents an interesting opportunity for inclusion in a Section 8 portfolio strategy, particularly as a cash-flow anchor. The Federal Market Rent (FMR) for the area in fiscal year 2026 is set at $2,350, which exceeds the current market rent of $2,156. This spread ensures that landlords can rely on stable, predictable rental income that is above the local market average, providing a solid financial foundation for their investment portfolio.
Moreover, the high median home value of $841,803 in ZIP 96719 suggests that it is a relatively affluent area. However, this does not necessarily translate into higher market rents, as evidenced by the lower market rent figure. Landlords participating in the Section 8 program can take advantage of this discrepancy by securing properties at or below the market rent while receiving government-subsidized payments that align with the higher FMR. This strategy allows them to enjoy steady cash flow without the volatility associated with purely market-driven rental incomes.
While the ZIP code offers limited potential as an appreciation play due to the lack of significant price-cut shares and days on market (DOM) statistics, it stands out as a diversifier. With a 14.3% renter share and a median income of $79,471, the area presents a balanced mix of renters and homeowners. This balance reduces the risk of over-reliance on any single type of tenant and provides a broader appeal to potential residents, ensuring consistent demand for rental properties.
In conclusion, ZIP 96719 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Its favorable spread between FMR and market rent, combined with the high median home value, makes it a reliable source of steady income. Additionally, its characteristics as a diversifier further enhance its appeal by offering stability and reducing dependency on appreciation alone.
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.