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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,800 | $224,164 | 0.8% | C |
| 2BR | $2,370 | $399,963 | 0.59% | F |
| 3BR | $3,060 | $438,406 | 0.7% | D |
| 4BR | $3,820 | $513,521 | 0.74% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 96748 (Kaunakakai, HI) hinges on the analysis of both yield and stability metrics. The Fair Market Rent (FMR) for ZIP 96748 in fiscal year 2024 is set at $1,790. This figure is notably higher than the median market rent of $878, indicating a potentially high-yield opportunity for landlords participating in the Section 8 program.
However, the stability of this market must also be considered. With a home value of $407,245, it suggests that property costs are relatively high. Additionally, the percentage of renters stands at 37.0%, which is not particularly low but also not exceptionally high, indicating a moderate demand for rental properties. The average income in the area is $77,422, which is a positive indicator for tenant financial stability.
The lack of data on the number of days on market (DOM) makes it challenging to fully assess the speed at which properties can be rented out. However, given the disparity between the FMR and the median market rent, there appears to be a significant upside potential for landlords who can secure tenants through the Section 8 program. This scenario points towards a high-yield environment due to the substantial difference in rental rates.
Despite the high yield potential, the classification leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The income level supports tenant reliability, and the rental rate gap could be sustained over time without the need for frequent property turnovers. This balance suggests that while returns are attractive, the market offers a degree of stability suitable for long-term investment strategies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.