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 | $1,520 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,920 |
| 4 Bedrooms | $3,530 |
| 5 Bedrooms | $4,095 |
| 6 Bedrooms | $4,586 |
| 7 Bedrooms | $4,953 |
| 8 Bedrooms | $5,201 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,110 | $1,110,566 | 0.19% | F |
| 3BR | $2,920 | $980,106 | 0.3% | F |
| 4BR | $3,530 | $1,102,785 | 0.32% | F |
| 5BR | $4,095 | $1,387,957 | 0.3% | F |
U.S. Census Bureau data (2024)
The ZIP code 96795, located in Waimanalo, HI, presents a unique opportunity for real-estate investors looking to balance yield and stability. According to the Fiscal Year 2024 Fair Market Rent (FMR), the average rental price for a property in this ZIP code is set at $1740. This figure is slightly higher than the market rate of $1684, indicating a modest potential for above-market returns.
The median home value in ZIP 96795 is $1,078,707, which is significantly higher than both the FMR and the market rental rates. This suggests that the area is primarily composed of owner-occupied homes rather than rentals, which could impact the overall demand for rental properties. The percentage of renters in the area stands at 22.2%, which is relatively low compared to other markets. However, the average household income in the area is $120,714, providing a strong economic foundation for potential tenants.
Evaluating the stability of the market, the lack of data on days on market (DOM) makes it challenging to assess how quickly rental properties might be filled. Despite this, the relatively high average income indicates a stable tenant pool with the financial capability to meet rent obligations. Given the low percentage of renters and the absence of DOM data, the market does not exhibit characteristics typical of a high-yield, low-stability flip-style market. Instead, it leans towards being a steady-cashflow zone, albeit with lower yields compared to areas with higher rental demand.
In summary, while ZIP 96795 offers a decent yield due to the slight premium in FMR over market rates, the limited rental population and strong economic indicators point to a more stable investment environment. For landlords and small-portfolio investors seeking consistent cash flow with moderate growth potential, this ZIP code presents a viable option. However, those aiming for high yields through rapid turnover should consider markets with higher rental activity and more robust data on DOM.
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.