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 | $1,710 |
| 1 Bedroom | $1,800 |
| 2 Bedrooms | $2,370 |
| 3 Bedrooms | $3,060 |
| 4 Bedrooms | $3,820 |
| 5 Bedrooms | $4,431 |
| 6 Bedrooms | $4,963 |
| 7 Bedrooms | $5,360 |
| 8 Bedrooms | $5,628 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,370 | $612,688 | 0.39% | F |
| 3BR | $3,060 | $710,135 | 0.43% | F |
| 4BR | $3,820 | $821,233 | 0.47% | F |
U.S. Census Bureau data (2024)
The median income in Lanai City, HI (ZIP 96763) stands at $92,417. At first glance, this might seem sufficient to cover the market rate rent of $1,051. However, when considering typical household expenses such as utilities, groceries, healthcare, and other costs, the financial burden becomes more pronounced. The Federal Market Rent (FMR) for the area, which is set at $1,790, far exceeds the actual market rate, indicating a significant disparity between the cost of living and the support provided by housing vouchers.
This gap suggests that landlords in Lanai City face stiff competition when it comes to attracting tenants who rely on vouchers. Given that 46.2% of the population are renters, there is a substantial demand for affordable housing. However, with only 3,443 people in the area, the pool of potential tenants is relatively small, making the competition for those who can pay the higher voucher rates even more intense.
The takeaway for landlords is clear: focusing on cash-paying tenants may be more profitable and less administratively burdensome than accepting vouchers. While vouchers ensure timely payments, the significantly higher FMR of $1,790 compared to the market rate of $1,051 means that voucher recipients might struggle to meet additional requirements or cover non-rent expenses. Landlords should consider the local income levels and the high percentage of renters when deciding their tenant acquisition strategy. Emphasizing the appeal of properties to cash-paying tenants could be a more straightforward approach to maintaining a steady revenue stream without the complexities associated with voucher programs.
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.