Section 8 Fair Market Rent (FMR) for ZIP 96792 - 2027

Investment Score for ZIP 96792

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,630
1 Bedroom	$1,730
2 Bedrooms	$2,260
3 Bedrooms	$3,130
4 Bedrooms	$3,780
5 Bedrooms	$4,385
6 Bedrooms	$4,911
7 Bedrooms	$5,304
8 Bedrooms	$5,569

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,730	$215,209	0.8%	C
2BR	$2,260	$279,633	0.81%	C
3BR	$3,130	$612,098	0.51%	F
4BR	$3,780	$678,443	0.56%	F
5BR	$4,385	$817,185	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 96792 (Waianae, HI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 96792 is set by HUD for 2026, with the following figures: - 0BR: $1680 - 1BR: $1800 - 2BR: $2360 (which is 32.4% of the median household income) - 3BR: $3280 - 4BR: $3960 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rental market in Waianae may differ significantly. The FMR for a 2BR unit is $2360, which is notably lower than the Zillow median price for a 2BR home, which stands at $280,934. This indicates that the FMR is set below the market average, suggesting that many units in the area may be too expensive for voucher holders. Given the high price-to-FMR ratio of 9.9x, it is clear that the rental market is significantly above the FMR levels. For instance, a typical 2BR unit priced at $280,934 would have a monthly mortgage payment of approximately $1,250 (assuming a 30-year fixed rate mortgage at 4.5%), plus property taxes, insurance, and maintenance costs. This could easily exceed the $2360 FMR limit, making it challenging for voucher holders to find suitable housing. #### Affordability & Renter Profile ZIP code 96792 has a population of 49,618, with 36.0% of residents being renters. The occupancy rate is 86.0%, indicating a relatively stable demand for rental properties. With a median household income of $87,509, the majority of residents are likely employed and earning above the national average. However, the 32.4% of median income required for a 2BR unit suggests that there is a significant portion of the population who might struggle with housing costs. The high price-to-FMR ratio of 9.9x implies that the rental market is tight and that many units are priced well above the FMR. This means that while there is a substantial number of renters, finding affordable housing within the FMR limits can be difficult. Consequently, the market is likely to favor higher-income renters over those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 96792 presents a mixed picture. While the rental market is robust, with a high occupancy rate and significant demand, the FMR levels are set below the market average. This means that investors looking to maximize their returns may find it challenging to achieve positive cash flow if they strictly adhere to the FMR guidelines. To illustrate, let’s consider a 2BR unit. The Zillow median price of $280,934 translates to a monthly mortgage payment of around $1,250. Adding property taxes (approximately $200 per month), insurance ($100 per month), and maintenance costs ($150 per month), the total monthly expenses would be roughly $1,700. Given the FMR of $2360, an investor would need to ensure that the rental income covers these expenses and provides a profit margin. However, the gap between the FMR and the actual market rent is wide, making it difficult to achieve positive cash flow without exceeding the FMR limits. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as 0BR and 1BR apartments, where the FMR is lower. For example, a 1BR unit with an FMR of $1800 might be more feasible for achieving positive cash flow compared to a 2BR unit with an FMR of $2360. 2. **Consider Off-Market Opportunities**: Given the high price-to-FMR ratio, investors might want to explore off-market opportunities, such as direct deals with homeowners or landlords who are willing to accept slightly below-market rents. This could help bridge the gap between the FMR and the actual market rent. 3. **Utilize Property Management Services**: Engaging professional property management services can help navigate the complexities of renting to Section 8 voucher holders. These services can provide valuable support in tenant screening, lease enforcement, and maintaining compliance with HUD regulations. #### Bottom Line For Section 8-focused investors, ZIP code 96792 presents a challenging environment due to the high price-to-FMR ratio and limited availability of units within the FMR range. The recommendation would be to **Skip** this ZIP code unless you can find specific opportunities that align closely with the FMR guidelines. If you do decide to invest, focus on smaller units and explore off-market opportunities to improve your chances of achieving positive cash flow.

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.