Location: Kahului-Wailuku-Lahaina, HI | Metro: Kahului-Wailuku-Lahaina, HI HUD Metro FMR Area
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 | $1,710 |
| 1 Bedroom | $1,800 |
| 2 Bedrooms | $2,370 |
| 3 Bedrooms | $3,060 |
| 4 Bedrooms | $3,820 |
| 5 Bedrooms | $4,431 |
| 6 Bedrooms | $4,963 |
| 7 Bedrooms | $5,360 |
| 8 Bedrooms | $5,628 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,060 | $451,698 | 0.68% | D |
| 4BR | $3,820 | $459,371 | 0.83% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 96729, located within the Kahului-Wailuku-Lahaina, HI HUD Metro FMR Area, reveals a favorable environment for rental properties. The HUD Fair Market Rent (FMR) for the area is set at $1790 for the fiscal year 2024, which is significantly higher than the reported market rent of $869 based on Census ACS data. This substantial gap indicates that voucher tenants can cashflow comfortably at the FMR rate without relying on premium units.
To further analyze the investment potential, consider the median home value in ZIP 96729, which stands at $483,024. Using the HUD FMR of $1790, the annual rent would be approximately $21,480. This translates into a rent-to-price ratio of about 4.4%, suggesting that the area is more suitable for renting rather than buying, given the relatively low rental yields compared to property values.
Note that the data does not provide specifics on the median days on market (DOM) or the percentage of homes that have been discounted in price. However, these metrics are less critical when considering the strong cashflow potential derived from the HUD FMR compared to the local market rent. The stability offered by the Section 8 program, combined with the high FMR, makes it an attractive option for landlords and small-portfolio investors seeking consistent income.
The strongest investor angle in ZIP 96729 is undoubtedly the cashflow advantage provided by the significant difference between the HUD FMR and the actual market rent. This allows investors to secure steady rental income well above the typical market rates, making it a reliable choice for those looking to generate passive income through real estate investments.
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.