Section 8 Fair Market Rent (FMR) for ZIP 96765 - 2027

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

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,730
1 Bedroom	$1,750
2 Bedrooms	$2,290
3 Bedrooms	$2,810
4 Bedrooms	$3,120
5 Bedrooms	$3,619
6 Bedrooms	$4,053
7 Bedrooms	$4,377
8 Bedrooms	$4,596

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

513

Median Household Income

$102,679

Housing Units

247

Renter Percentage

35.1%

Occupancy Rate

78.5%

Renter Occupied

A landlord considering investing in ZIP code 96765 for Section 8 properties must follow a structured decision-making process based on specific metrics. Here's how to evaluate the opportunity:

Does the Fair Market Rent (FMR) of $2,540 (for the metro area in fiscal year 2026) cover the debt service on a property?
- If the answer is yes, proceed to the next question.
- If the answer is no, buying in ZIP 96765 is not advisable because the rental income would not sufficiently cover the mortgage payments and other expenses.
Is the market rent of $1,875 (based on Census ACS data) above, at, or below the FMR?
- If the market rent is above the FMR, it indicates that the local rental market is strong and competitive, which could mean difficulty in securing tenants who qualify for Section 8 vouchers.
- If the market rent is at or below the FMR, it suggests that the local rental market aligns well with the Section 8 rates, making it easier to find qualified tenants.
Are the 35.1% of renters combined with the days on market (DOM) sufficient to meet demand?
- If the DOM is low, it implies a healthy demand for rental properties, which would support a positive decision to invest in Section 8 properties.
- If the DOM is high, it signals a weak rental market where finding tenants willing to accept Section 8 vouchers might be challenging.

The final decision hinges on these three factors. If the FMR covers debt service, the market rent is at or below the FMR, and there is a sufficient number of renters with low DOM, then the answer is yes, a landlord should consider buying in ZIP 96765 for Section 8 properties. However, if any of these conditions are not met, particularly if the market rent exceeds the FMR or the DOM is high, the answer shifts to no or it depends, respectively, based on the landlord's risk tolerance and investment strategy.

Data Sources: FMR data from HUD (2027). 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.