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 | $1,720 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $2,790 |
| 4 Bedrooms | $3,180 |
| 5 Bedrooms | $3,689 |
| 6 Bedrooms | $4,132 |
| 7 Bedrooms | $4,463 |
| 8 Bedrooms | $4,686 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,740 | $493,229 | 0.35% | F |
| 2BR | $2,270 | $566,698 | 0.4% | F |
| 3BR | $2,790 | $921,456 | 0.3% | F |
| 4BR | $3,180 | $1,084,265 | 0.29% | F |
| 5BR | $3,689 | $1,097,921 | 0.34% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 96766, Lihue, HI, within Kauai County, reveals several key points that should inform investment decisions. The HUD Fair Market Rent (FMR) for the area is set at $2,460 per month for fiscal year 2026, which is significantly higher than the market rent of $1,942 based on Census ACS data. This difference suggests that voucher tenants can provide positive cash flow to landlords, even when operating below the FMR rate.
To further analyze the potential profitability, consider the median home value of $834,072. The rent-to-price ratio, calculated using the market rent figure, stands at approximately 0.23%, indicating that rental income alone is not likely to be the primary driver of financial returns in this market. However, the higher FMR rate does offer an opportunity to achieve better cash flow compared to typical market rents.
The data shows a median Days on Market (DOM) of N/A and a price cut share of 0.2%. These figures suggest a relatively stable housing market with low volatility, which could benefit long-term investors looking for steady performance rather than rapid appreciation. Given the low likelihood of significant price cuts, the market appears to favor stability and consistent cash flow over short-term gains.
In conclusion, the strongest investor angle in Lihue, HI, for Section 8 properties is cash flow. With voucher tenants paying up to $2,460, landlords can expect to generate positive cash flow even in a market where the typical rent is lower, making it an attractive option for those prioritizing regular income from their investments.
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.