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 | $1,500 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,440 |
| 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 |
|---|---|---|---|---|
| 3BR | $2,440 | $525,706 | 0.46% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 96783 within the Hawaii County, HI metro area reveals several key insights. The HUD Fair Market Rent (FMR) for the metro scope in fiscal year 2026 is set at $2,020. However, the current market rent, as reported by the Census ACS, stands at $750. This significant disparity means that voucher tenants in this area would cashflow at the HUD FMR level, with landlords potentially receiving a substantial subsidy above the local market rate.
To further analyze the investment potential, consider the median home value in ZIP 96783, which is $551,087. Using this figure, we can derive the rent-to-price ratio. At a market rent of $750, the ratio comes out to approximately 0.14%, indicating a strong rental market relative to property values. This low ratio suggests that rental income can provide a solid return on investment, especially when compared to the high cost of homeownership in the area.
The data does not provide specific figures for the median Days on Market (DOM) or the percentage of homes that have been discounted. However, these metrics would be relevant to understanding the rent-versus-buy dynamics. Given the high median home value and relatively low market rent, it is likely that the buy-versus-rent scenario favors investors looking to capitalize on rental income rather than speculative home purchases.
In conclusion, the strongest investor angle in ZIP 96783 is cashflow. With HUD FMRs significantly higher than local market rents, landlords can expect to generate positive cash flow from Section 8 voucher tenants. This makes the area particularly attractive for those seeking stable, long-term rental income opportunities.
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.