Section 8 Fair Market Rent (FMR) for ZIP 96754 - 2027

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

Investment Score for ZIP 96754

Monthly Rent (2BR)

$2,400

Median Price (2BR)

$2,024,954

1% Rule

0.12%

Annual Yield

1.42%

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	$1,810
1 Bedroom	$1,830
2 Bedrooms	$2,400
3 Bedrooms	$2,950
4 Bedrooms	$3,340
5 Bedrooms	$3,874
6 Bedrooms	$4,339
7 Bedrooms	$4,686
8 Bedrooms	$4,920

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	$1,830	$1,923,796	0.1%	F
2BR	$2,400	$2,024,954	0.12%	F
3BR	$2,950	$1,737,455	0.17%	F
4BR	$3,340	$3,107,487	0.11%	F
5BR	$3,874	$4,385,113	0.09%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,272

Median Household Income

$90,353

Housing Units

1,687

Renter Percentage

18.8%

Occupancy Rate

80.3%

Renter Occupied

255

ZIP code 96754, located in Kilauea, HI within the Kauai County, HI metro area, presents a unique profile compared to typical ZIP codes in the county. The Fair Market Rent (FMR) for 96754 stands at $2,660 for fiscal year 2026, which is notably higher than the market rent of $1,646. This suggests that government-assisted housing through programs like Section 8 may be more prevalent here, given the discrepancy between FMR and market rents.

The median home value in 96754 is $2,109,345, indicating that it is a premium sub-market within the Kauai County metro area. High-end properties are common, and the cost of living reflects this premium status. However, despite the high home values, the renter share in 96754 is relatively substantial at 18.8%. This combination of high home values and a significant portion of renters could signal that 96754 is an attractive location for Section 8 tenants who seek access to higher-priced neighborhoods without the financial burden of homeownership.

To further contextualize, consider the following:

Market Rent vs. FMR: The gap between the FMR and the actual market rent indicates that there may be a significant number of rental units in 96754 that qualify for Section 8 assistance. Landlords and investors can leverage this by ensuring their rental properties meet the necessary standards to participate in such programs.
Renter Share: An 18.8% renter share is above average for many high-value ZIP codes, suggesting a demand for rental properties. This could make 96754 a desirable investment location for those interested in long-term rental income.
Home Values: The median home value of $2,109,345 places 96754 firmly in the premium segment of the Kauai County market. This could attract investors looking for high-end properties, although the significant renter share might also indicate a need for more affordable rental options.

In summary, ZIP code 96754 is a premium sub-market within the Kauai County, HI metro area, with high home values and a notable renter share. The disparity between FMR and market rent points to potential opportunities for Section 8 participation, making it a strategic location for both landlords and small-portfolio investors.

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.