Location: Hawaii County, HI | Metro: Hawaii 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 | $1,470 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,480 | $199,577 | 0.74% | D |
| 2BR | $1,910 | $265,865 | 0.72% | D |
| 3BR | $2,400 | $322,830 | 0.74% | D |
| 4BR | $2,730 | $393,141 | 0.69% | D |
U.S. Census Bureau data (2024)
The ZIP code 96778, encompassing Pahoa, HI, stands out within Hawaii County due to its unique demographic and economic characteristics. With a population of 15,262, it has a rental rate of 20.2%, indicating that nearly one in five residents are tenants. The median household income here is $39,750, which is lower than the state average but still provides a stable financial base for many families. Notably, the median home value in this area is $288,835, reflecting a relatively affordable housing market compared to other parts of Hawaii.
For landlords and small-portfolio investors, understanding the voucher economics is crucial. The Fair Market Rent (FMR) for ZIP 96778, set at $1,970 for metro FY 2026, is significantly higher than the current market rent of $1,293, as reported by the Census Bureau's American Community Survey (ACS). This disparity means that landlords participating in the Section 8 program can expect to receive a higher rent subsidy per unit, effectively increasing their revenue beyond typical market rates. For example, if a landlord charges $1,500 per month for rent, they would receive the difference between the actual rent and the market rent, plus an additional amount up to the FMR, resulting in a substantial increase in income.
When analyzing the data signature of ZIP 96778, it reads as stable rather than transitional. The consistent median home values and median income levels suggest a steady economic environment. Additionally, the slight increase in rental rates over time indicates a balanced market where demand meets supply without causing significant fluctuations. This stability is beneficial for long-term investment strategies, ensuring predictable returns and minimizing risks associated with rapid changes in the local economy.
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.