Location: Kauai County, HI | Metro: Kauai 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 | $1,590 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $707,266 | 0.23% | F |
| 2BR | $2,100 | $1,202,639 | 0.17% | F |
| 3BR | $2,580 | $1,416,831 | 0.18% | F |
| 4BR | $2,870 | $2,325,959 | 0.12% | F |
| 5BR | $3,329 | $3,333,262 | 0.1% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 96756, Koloa, HI, set at $2,070 for metro fiscal year 2026, represents the payment standard for Section 8 housing vouchers. This figure does not equate to your rent; rather, it is the maximum amount that the Housing Choice Voucher program will pay towards a tenant's rent. The actual rent you charge can be less, but it cannot exceed this amount.
To put this into perspective, consider that the average monthly rent in Koloa, based on recent Census American Community Survey (ACS) data, is $1,659. This means that the FMR is higher than the typical market rate, which can be advantageous if you're looking to cover maintenance costs or increase your income slightly above the local average.
The demand for rental properties in Koloa is robust, with 42.9% of residents being renters. This high percentage indicates a strong potential for occupancy and suggests that there are many people who might be interested in your property through the Section 8 program.
When acquiring a new property for Section 8, you should also be aware of the typical purchase price. In Koloa, the median home value is around $1,164,987. This figure helps you understand the initial investment required and the potential resale value of the property.
Before committing to a Section 8 rental, one crucial step is to verify that your property meets the necessary quality and safety standards. These requirements, known as Housing Quality Standards (HQS), ensure that the units are safe, decent, and sanitary. Failure to meet these standards could result in disqualification from the program.
In summary, the FMR of $2,070 provides a benchmark for the maximum subsidy you can receive. With a renter share of 42.9%, you can expect a good level of interest in your property. And with an acquisition cost of about $1,164,987, you need to ensure the property is HQS compliant before proceeding.
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.