Section 8 Fair Market Rent (FMR) for ZIP 96741 - 2027

Location: Kauai County, HI | Metro: Kauai County, HI

Investment Score for ZIP 96741

Monthly Rent (2BR)

$2,100

Median Price (2BR)

$1,040,223

1% Rule

0.2%

Annual Yield

2.42%

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	$1,590
1 Bedroom	$1,600
2 Bedrooms	$2,100
3 Bedrooms	$2,580
4 Bedrooms	$2,870
5 Bedrooms	$3,329
6 Bedrooms	$3,728
7 Bedrooms	$4,026
8 Bedrooms	$4,227

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
2BR	$2,100	$1,040,223	0.2%	F
3BR	$2,580	$1,046,551	0.25%	F
4BR	$2,870	$1,322,873	0.22%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

6,183

Median Household Income

$110,873

Housing Units

2,527

Renter Percentage

18.9%

Occupancy Rate

87.4%

Renter Occupied

418

Kalaheo, HI, located in ZIP code 96741, is a suburban area on the island of Kauai that offers a unique blend of natural beauty and affordable living compared to other parts of Hawaii. The market here presents a mix of opportunities and challenges for landlords and small-portfolio investors.

The Fair Market Rent (FMR) for Kalaheo is set at $2,200 for the fiscal year 2026, reflecting the government's assessment of rental affordability in the area.
The actual market rent, based on Census American Community Survey (ACS) data, stands at $1,989, indicating that rental properties in Kalaheo are slightly below the FMR, which could present a window for pricing adjustments.
The median home value in Kalaheo is $1,079,673, suggesting that while homeownership remains costly, the relatively high property values can translate into strong equity growth for long-term investments.
Renters make up 18.9% of the housing market, showing that a significant portion of residents prefer renting over owning, which supports the viability of rental properties.
The Days on Market (DOM) is listed as N/A, which might indicate limited data availability or a very active market where properties are leased quickly, without substantial wait times.
The median household income in Kalaheo is $110,873, providing evidence that the local economy can support higher rents and potentially attract tenants willing to pay closer to the FMR.

Synthesizing these points, investors in Kalaheo should consider the gap between the FMR and current market rents as an opportunity to increase rental income. With a median home value well above the national average, there is potential for strong capital appreciation. However, the relatively low renter share suggests that competition among landlords may be fierce, requiring strategic management and maintenance of properties to ensure occupancy. The median income figure supports the ability to charge higher rents, aligning closer with the FMR, but investors must also be prepared for the possibility of quick turnovers, indicated by the N/A DOM, which requires efficient property management practices.

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.