Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA
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 | $1,940 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,680 |
| 3 Bedrooms | $3,710 |
| 4 Bedrooms | $4,480 |
| 5 Bedrooms | $5,197 |
| 6 Bedrooms | $5,821 |
| 7 Bedrooms | $6,287 |
| 8 Bedrooms | $6,601 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,060 | $316,504 | 0.65% | D |
| 2BR | $2,680 | $460,317 | 0.58% | F |
| 3BR | $3,710 | $923,885 | 0.4% | F |
| 4BR | $4,480 | $1,041,073 | 0.43% | F |
| 5BR | $5,197 | $1,166,395 | 0.45% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 96782 in Pearl City, HI, are significant. Tenant turnover is a critical issue, as the market rent stands at $2,405 compared to the Federal Market Rent (FMR) of $2,530 for fiscal year 2024. This discrepancy can lead to higher turnover rates since tenants might prefer properties that offer the full FMR amount. Vacancy exposure is another concern, with the days on market (DOM) being unavailable, indicating a lack of historical data to predict how long a property might remain vacant between tenants. Given the typical home value of $945,872 and the median income of $108,669, there is a notable gap that could result in deferred maintenance issues, as lower-income tenants may not have the financial means to keep up with the upkeep expected in higher-value homes.
However, these risks are somewhat mitigated by the high renter share in the area, which is 31.1%. High renter density typically translates into a greater demand for rental vouchers, making it easier to find tenants who qualify for Section 8. The strong presence of renters also suggests a robust market for rentals, potentially reducing the impact of vacancy exposure.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 96782 presents a favorable environment for Section 8 investments. Therefore, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.