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 | $1,610 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,630 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,630 | $483,030 | 0.54% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 96728 reveals several potential challenges that could impact a landlord's decision to participate in the Section 8 program. First, consider the tenant turnover rate. At a market rent of $1,333, the competition for tenants is intense compared to the Fair Market Rent (FMR) of $2,310, which is significantly higher. This disparity suggests that tenants might be more likely to move if they find a better deal elsewhere, leading to frequent turnovers. Landlords should prepare for the administrative burden and costs associated with high tenant turnover.
Vacancy exposure is another concern. The average days on market (DOM) for rental properties in this area is not available, which makes it difficult to predict how long a property might remain vacant. However, given the high FMR and relatively lower market rent, there is a risk that landlords might struggle to fill vacancies quickly, especially during economic downturns or periods of increased supply.
The deferred-maintenance exposure is also noteworthy. With a typical home value of $511,994 and a median income of $67,500, many residents might have limited financial resources to cover maintenance costs, even with rental assistance. Landlords need to be prepared to invest in regular upkeep to maintain property standards required by the Section 8 program.
Despite these risks, the high renter share of 22.3% in ZIP 96728 is a positive indicator. A significant portion of the population relies on rental housing, which generally translates into a higher demand for Section 8 vouchers. This demand can help mitigate some of the risks associated with vacancy and turnover, as there will likely be a steady pool of qualified tenants seeking affordable housing options.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.