Location: Hawaii County, HI | Metro: Hawaii County, HI
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 | $1,440 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,450 | $290,199 | 0.5% | F |
| 2BR | $1,870 | $384,190 | 0.49% | F |
| 3BR | $2,360 | $477,072 | 0.49% | F |
| 4BR | $2,730 | $560,210 | 0.49% | F |
| 5BR | $3,167 | $624,093 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 96749, located in Keaau, HI, reveals that voucher tenants will only cashflow with premium units. The HUD Fair Market Rent (FMR) for the area is set at $1,870 per month for the fiscal year 2026, while the market rent, as measured by Zillow's ZORI, stands at $2,152 per month. This indicates that landlords must offer units above the average quality to ensure positive cash flow when renting to voucher holders.
To further understand the investment potential, consider the median home value in the area, which is $460,972. Using this figure, we can calculate the rent-to-price ratio, which comes out to approximately 0.49%. This ratio suggests that rental income alone would take nearly 204 years to cover the cost of a typical home in the area, indicating that appreciation and stability are key factors in long-term real estate investments here.
The current dynamics of the market also show that there is no available data on the median Days on Market (DOM) and the share of properties that have experienced price cuts. However, these metrics are less critical given the strong disparity between the HUD FMR and the market rent. The focus should be on securing premium units that can command rents closer to the market rate, thereby ensuring positive cash flow for Section 8 landlords.
In conclusion, the strongest investor angle in ZIP 96749 is stability, given the consistent demand for housing and the potential for long-term value retention due to the high median home value and the limited supply of units that can cashflow at the HUD FMR level.
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.