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 | $1,710 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,370 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,960 |
| 5 Bedrooms | $4,594 |
| 6 Bedrooms | $5,145 |
| 7 Bedrooms | $5,557 |
| 8 Bedrooms | $5,835 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,370 | $984,990 | 0.24% | F |
| 3BR | $3,280 | $1,132,888 | 0.29% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Kaaawa, HI (ZIP 96730), is characterized by a median home value of $1,061,660. This figure suggests a high-end market where homeownership is predominantly reserved for those with significant financial resources. The absence of data regarding the percentage of listings that have been reduced and the median days on market (DOM) indicates stability in the local housing market, implying that there is little pressure from sellers to lower their asking prices or hurry sales.
On the rental side, the Fair Market Rent (FMR) for ZIP 96730 as of fiscal year 2024 is set at $1,950, while the actual market rent, according to the Census Bureau's American Community Survey (ACS), stands at $2,198. This gap between the FMR and the market rent signals a strong demand for rental properties in the area, suggesting that landlords can maintain or even slightly increase rents without losing tenants to other options.
The setup in Kaaawa, HI, implies that long-term investors might find the market attractive due to its inherent stability and the potential for modest appreciation. Given the high median home values and the robust rental market, it is reasonable to expect that property values will remain steady or see slight growth over the next 12 to 24 months. However, the lack of specific historical trends or recent changes in listing reductions and DOM means that rapid appreciation is unlikely. Investors should focus on the income generated from rentals and the long-term preservation of capital rather than expecting significant short-term gains.
A realistic appreciation thesis for long-hold investors would be based on the assumption that the area’s desirability, driven by its natural beauty and proximity to amenities, will continue to attract buyers and renters willing to pay premium prices. However, the absence of data on recent price adjustments and DOM makes it difficult to assert a strong case for substantial appreciation beyond inflationary adjustments.
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.