Location: Hawaii County, HI | Metro: Hawaii County, HI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,600 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 96773 focuses on the discrepancy between the Fair Market Rent (FMR) of $2,080 for the metro area in fiscal year 2026 and the current market rent, which is not available at this time. This gap highlights the potential challenges for landlords and small-portfolio investors.
Given that the FMR is higher than the typical market rent, it makes ZIP 96773 a favorable location for voucher tenants. Voucher holders can pay up to $2,080 per month, which is above the local market rate, thus creating a yield play for landlords. This means that landlords can potentially earn more from renting to voucher tenants than they would from traditional renters paying market rates.
The median income in ZIP 96773 is $65,179. With only 7.3% of the population being renters, the demand for rental properties is relatively low. However, the presence of voucher tenants can help fill this demand and provide a stable source of income for landlords.
The median home value in ZIP 96773 is $816,700, indicating a high-cost residential area. Despite this, the rental market is likely to remain competitive due to the limited number of renters. Therefore, landlords should be cautious about setting rents too high, as it may deter potential tenants.
In summary, the gap between the FMR and the market rent in ZIP 96773 presents an opportunity for landlords to benefit from voucher tenants. This strategy can help achieve higher yields compared to the open-market rates. However, the overall rental market is constrained by the low percentage of renters, so landlords must balance their pricing to attract and retain tenants effectively.
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.