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 | $2,400 |
| 1 Bedroom | $2,420 |
| 2 Bedrooms | $3,160 |
| 3 Bedrooms | $3,880 |
| 4 Bedrooms | $4,430 |
| 5 Bedrooms | $5,139 |
| 6 Bedrooms | $5,756 |
| 7 Bedrooms | $6,216 |
| 8 Bedrooms | $6,527 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,420 | $886,199 | 0.27% | F |
| 2BR | $3,160 | $1,234,446 | 0.26% | F |
| 3BR | $3,880 | $1,914,910 | 0.2% | F |
| 4BR | $4,430 | $2,701,512 | 0.16% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 96722 in Princeville, HI, is set at $3,500 for the metro area fiscal year 2026. This figure represents the payment standard under the Section 8 housing program, meaning that if you participate in Section 8, you will receive up to $3,500 per month for a unit in this ZIP code. It's important to note that this is not the rent you would charge tenants directly; it's the maximum amount the government will pay on behalf of eligible tenants.
To put this into perspective, the average rent in Princeville, according to the Census American Community Survey (ACS), is $1,711 per month. This indicates that the FMR is significantly higher than the typical market rate, which could be advantageous for landlords who want to ensure they receive competitive compensation.
The demand for rental properties in Princeville is strong, with 24.6% of residents being renters. This suggests that there is a substantial pool of potential tenants who might benefit from Section 8 assistance. However, the acquisition cost for a property in this ZIP code can be high, with an estimated value of around $1,520,994 for a median-priced home. This is a significant investment, but it could be offset by the steady income provided through the Section 8 program.
Before you decide to enroll your property in the Section 8 program, you should verify that your property meets all the necessary requirements for eligibility. This includes ensuring that your property complies with health and safety standards and that it does not exceed the size and unit type restrictions set by the program.
In summary, participating in Section 8 in Princeville, HI, could provide a reliable source of income, with the government paying up to $3,500 per month for a unit. The local rent average is much lower at $1,711, making Section 8 potentially more lucrative. With a 24.6% share of renters, there is a good demand for affordable housing. However, the initial investment is high at approximately $1,520,994 for a median-priced home. Ensure your property meets all Section 8 requirements before proceeding.
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.