Section 8 Fair Market Rent (FMR) for ZIP 96731 - 2027

Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA

Investment Score for ZIP 96731

N/A

Monthly Rent (2BR)

$2,080

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,500
1 Bedroom	$1,600
2 Bedrooms	$2,080
3 Bedrooms	$2,880
4 Bedrooms	$3,480
5 Bedrooms	$4,037
6 Bedrooms	$4,521
7 Bedrooms	$4,883
8 Bedrooms	$5,127

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,600	$984,472	0.16%	F
3BR	$2,880	$1,082,077	0.27%	F
4BR	$3,480	$1,133,515	0.31%	F
5BR	$4,037	$1,225,928	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,782

Median Household Income

$73,417

Housing Units

1,294

Renter Percentage

37.3%

Occupancy Rate

61.9%

Renter Occupied

299

The ZIP code 96731, located in Kailua-Kona, Hawaii, offers a unique blend of tropical living and real estate investment opportunities. This coastal area is known for its scenic beauty and relaxed lifestyle, attracting both residents and tourists alike. However, it's also characterized by a high cost of living and significant differences between fair market rents and actual market rents.

The Fair Market Rent (FMR) for ZIP 96731 as of the fiscal year 2024 is set at $2180. This figure represents the maximum amount that low-income families should pay for housing, ensuring they have enough resources left over for other basic needs.
The Census Bureau's American Community Survey (ACS) reports the average market rent in the area at $1,422. This lower-than-FMR rent suggests that landlords can potentially charge more than the average market rate without exceeding what is considered fair.
The median home value in ZIP 96731 is a substantial $1,058,876. This indicates a high-end real estate market, where properties tend to be expensive due to the desirability of the location and limited availability of land.
Renters make up 37.3% of the population in this ZIP code, highlighting a significant demand for rental properties. Landlords can leverage this statistic to understand the potential tenant pool and adjust their rental offerings accordingly.
The median household income in the area is $73,417. This income level supports a moderate to strong ability to pay higher rents, especially considering the high cost of living and property values.

Investors looking to enter the Kailua-Kona market should take note of these key points. The disparity between the Fair Market Rent and the actual market rent presents an opportunity to increase rental rates while still remaining competitive. Additionally, the high median home value and income levels suggest a robust local economy capable of supporting higher rental prices. The significant renter share in the population ensures a steady demand for rental properties, making ZIP 96731 a promising area for landlords and small-portfolio investors seeking stable returns.

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.