Location: Kauai County, HI | Metro: Kauai 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 | $1,590 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,100 | $671,200 | 0.31% | F |
| 3BR | $2,580 | $786,573 | 0.33% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 96796, located in Kilauea, HI, are significant. First, tenant turnover could be problematic due to the disparity between the market rent and the Fair Market Rent (FMR) set by HUD. The market rent is $1,612, while the FMR for fiscal year 2026 is $2,020. This gap may incentivize tenants to seek higher-paying jobs or move to areas where they can afford the full market rate, leading to frequent turnover.
Vacancy exposure is another concern. The data does not provide a specific number of days on the market (DOM), which makes it difficult to predict how long a property might remain vacant. In a competitive rental market, vacancies can lead to financial strain, especially if the landlord relies on steady rental income.
The deferred-maintenance exposure is also notable. With a typical home value of $775,559 and a median income of $89,205, the economic conditions suggest that many tenants may struggle to cover maintenance costs beyond their rent. Landlords should prepare for potential higher-than-average repair and maintenance expenses.
However, these risks must be weighed against the high renter share of 51.8%. High renter density often translates into a robust demand for rental properties, including those accepting Section 8 vouchers. This strong demand can mitigate some of the risks associated with tenant turnover and vacancy exposure, as there is likely to be a continuous pool of potential tenants.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP code 96796 is moderate.
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.