Location: Kahului-Wailuku-Lahaina, HI | Metro: Kahului-Wailuku-Lahaina, HI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,850 |
| 1 Bedroom | $2,030 |
| 2 Bedrooms | $2,660 |
| 3 Bedrooms | $3,360 |
| 4 Bedrooms | $4,150 |
| 5 Bedrooms | $4,814 |
| 6 Bedrooms | $5,392 |
| 7 Bedrooms | $5,823 |
| 8 Bedrooms | $6,114 |
The analysis for ZIP code 96784 in Hawaii regarding Section 8 properties reveals a challenging landscape due to limited data availability. The Fair Market Rent (FMR) for a two-bedroom property in this area for fiscal year 2024 is set at $2140 annually. However, the market rent figure is not available, making it difficult to draw a direct comparison.
To calculate the gross yield, we would typically divide the annual rental income by the median home value. In the case of Section 8 properties, using the FMR of $2140, the gross yield cannot be accurately determined because the median home value for ZIP 96784 is also not provided. This missing information is critical for understanding the potential profitability of Section 8 properties in this area.
Without the market rent figure, it's impossible to assess how competitive Section 8 rates are compared to what landlords could potentially earn from market-rate tenants. Typically, if market rents are significantly higher than the Section 8 rates, landlords might find it less attractive to participate in the program unless there are other benefits such as guaranteed occupancy or lower vacancy rates.
The lack of data on renter density and days on market (DOM) further complicates the analysis. These metrics are essential for gauging the demand for rental properties and the speed at which they can be leased. A high renter density suggests strong demand, which could support higher market rents, whereas a low DOM indicates that properties are leasing quickly, another positive sign for landlords.
In summary, while the annualized FMR for a two-bedroom Section 8 property in ZIP 96784 is $2140, the absence of key data points such as median home values, market rents, renter density, and DOM makes it challenging to provide a clear cap-rate or gross-yield comparison. Investors should seek additional local market insights to make informed decisions about participating in the Section 8 program in this area.
Data Sources: FMR data from HUD (2027).
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.