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 | $2,170 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $3,120 |
| 3 Bedrooms | $3,940 |
| 4 Bedrooms | $4,870 |
| 5 Bedrooms | $5,649 |
| 6 Bedrooms | $6,327 |
| 7 Bedrooms | $6,833 |
| 8 Bedrooms | $7,175 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,390 | $633,346 | 0.38% | F |
| 2BR | $3,120 | $819,397 | 0.38% | F |
| 3BR | $3,940 | $1,314,019 | 0.3% | F |
| 4BR | $4,870 | $1,674,423 | 0.29% | F |
| 5BR | $5,649 | $1,586,510 | 0.36% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 96753 in Kihei, HI, are significant. First, tenant turnover is likely to be high due to the disparity between the market rent of $3,536 and the Fair Market Rent (FMR) of $2,520 for FY 2024. This difference suggests that tenants may struggle to cover the cost of living in the area, leading to frequent moves and higher vacancy rates. Indeed, the average days on market (DOM) for rental properties in this area is 94 days, indicating substantial vacancy exposure. Additionally, there is a notable risk of deferred maintenance. With a typical home value of $1,012,201 and a median income of $88,408, residents may find it challenging to keep up with property maintenance costs, especially if they are relying on government assistance to cover their housing expenses.
However, these risks must be weighed against the high concentration of renters in the area. The renter share stands at 37.8%, which is considerably high and suggests a robust demand for rental units. This high density of renters typically correlates with increased demand for housing vouchers, making it easier for landlords to find tenants who can afford the FMR through Section 8 programs. Despite the challenges posed by the local market conditions, the strong presence of renters provides a stable foundation for voucher-based tenancy.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.