Section 8 Fair Market Rent (FMR) for ZIP 96744 - 2027

Investment Score for ZIP 96744

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	$2,020
1 Bedroom	$2,150
2 Bedrooms	$2,800
3 Bedrooms	$3,880
4 Bedrooms	$4,680
5 Bedrooms	$5,429
6 Bedrooms	$6,080
7 Bedrooms	$6,566
8 Bedrooms	$6,894

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	$2,150	$528,319	0.41%	F
2BR	$2,800	$641,077	0.44%	F
3BR	$3,880	$1,049,879	0.37%	F
4BR	$4,680	$1,280,698	0.37%	F
5BR	$5,429	$1,457,549	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 96744 (Kaneohe, HI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Kaneohe, HI (ZIP 96744) in 2026 indicate that the rental costs for various unit sizes range from $2,020 for a zero-bedroom unit to $4,780 for a four-bedroom unit. However, these figures must be compared against actual market rents to understand their practical implications for Section 8 voucher holders. For a two-bedroom unit, the FMR is $2,850, which represents 26.0% of the median household income of $131,653. This suggests that a significant portion of the population can afford to pay the FMR for a two-bedroom unit without assistance. However, for those relying on Section 8 vouchers, the rent ceiling of $2,850 might pose challenges given the high actual market rents. #### Affordability & Renter Profile The median household income in Kaneohe is quite high at $131,653, indicating that residents generally have strong financial capabilities. The renter percentage is relatively low at 22.6%, suggesting that most residents own their homes. This implies a tight rental market where demand could easily outstrip supply, making it challenging for renters to find affordable housing. The occupancy rate of 95.5% further supports the notion that the rental market is robust and well-utilized. With such a high occupancy rate, there is little room for new units to enter the market without causing significant disruption to existing tenancies. #### Investor Angle From an investor perspective, the price-to-FMR ratio of 18.8x for a two-bedroom unit is particularly noteworthy. This means that the median home value for a two-bedroom unit is approximately $643,917, while the FMR is only $2,850. Given this ratio, it is clear that the actual purchase cost of properties far exceeds what can be earned through rental income based on FMR rates. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Given the high median home value and the relatively low FMR, it is unlikely that an investor would achieve positive cash flow solely from rental income at FMR levels. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like zero-bedroom or one-bedroom apartments. For instance, the FMR for a one-bedroom unit is $2,180, which is still significantly lower than the median home value but may offer better cash flow potential due to lower acquisition costs. 2. **Consider Location-Specific Strategies**: Investors should look for areas within Kaneohe that have slightly lower median home values or higher vacancy rates. This could help in achieving a better balance between purchase price and rental income. Additionally, properties near military bases or other employment hubs might command higher rents despite being in a tight market. 3. **Utilize Property Management Services**: Given the complexities of managing properties in a high-cost area like Kaneohe, utilizing professional property management services could be beneficial. This ensures that the property is properly maintained and marketed, potentially attracting tenants willing to pay closer to the actual market rent rather than just the FMR. #### Bottom Line For Section 8-focused investors, Kaneohe, HI (ZIP 96744) presents a challenging environment. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow purely from rental income at FMR levels. Therefore, the recommendation for this ZIP code is to **Skip** unless you can secure properties at a significantly lower price point or in submarkets with higher vacancy rates. If you do decide to invest, focusing on smaller units and leveraging professional property management services could mitigate some of the risks involved.

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.