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 | $1,650 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,140 | $626,799 | 0.34% | F |
| 3BR | $2,690 | $599,712 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 96755, located in Kapaau, HI, within the Hawaii County, HI metro area, reveals key insights for landlords and small-portfolio investors.
The rent math does not work favorably here. The Fair Market Rent (FMR) for the fiscal year 2026 is set at $1,970, while the current market rent as per Census ACS data is $1,745. This indicates that landlords might struggle to charge the FMR due to lower market expectations, resulting in a potential shortfall of $225 per month if they aim to align with the FMR.
Acquisition of properties is moderately affordable in this ZIP code. The median home value stands at $635,759. However, the lack of data on days on market (DOM) and the percentage of homes that required price cuts makes it difficult to assess the competitive nature of the housing market. Landlords should be cautious about overpaying for properties without additional context on these metrics.
Tenant demand is present but limited. With a total population of 3,677, only 20.9% are renters. This translates to approximately 767 rental units needed, suggesting a smaller pool of potential tenants compared to other areas with higher renter shares.
In summary, while there is a presence of tenant demand, the financials are challenging. The discrepancy between FMR and market rent suggests pricing difficulties, and the median home value implies moderate affordability. However, the absence of data on DOM and price cut percentages leaves significant uncertainty regarding the ease of acquiring properties. For landlords and small-portfolio investors, careful consideration of these factors is essential before entering this market.
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.