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 | $1,640 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,680 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,680 | $488,065 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 96781, located in a rural area of California, presents a unique challenge for both renters and landlords. The median income for households in this area stands at $96,400, which places financial constraints on the ability of many renters to pay the market rate for housing. At a market rate of $1,500 per month, the cost represents a significant portion of the average household's budget, especially when considering other living expenses.
However, the situation becomes even more complex when comparing the market rate to the Federal Market Rent (FMR) standard set for the area, which is $2,280 per month for fiscal year 2026. This standard is higher than the current market rate, indicating that the government's estimate for reasonable rental costs exceeds what the local market is currently charging. For renters relying on Section 8 vouchers, this means they could potentially face difficulties finding units that accept their vouchers due to the higher FMR compared to the actual market rate.
The ZIP code has a relatively low percentage of renters at 17.8%, with a total population of 2,073. This suggests a limited pool of potential tenants, which could increase competition among landlords. Given the disparity between the median income and the FMR, landlords who accept vouchers might find themselves with fewer options for raising rents to match the FMR, thereby limiting their revenue potential.
For landlords and small-portfolio investors, the key takeaway is that while accepting Section 8 vouchers can provide a steady stream of rental income, it may also limit flexibility in pricing. In contrast, focusing on cash-paying tenants allows for more competitive pricing strategies, potentially increasing occupancy rates in an area where the number of renters is already low. However, landlords should be prepared to navigate the challenges associated with both groups, ensuring compliance with voucher requirements or managing the risks of non-payment from cash-paying tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.