Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,830 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,530 |
| 3 Bedrooms | $3,500 |
| 4 Bedrooms | $4,230 |
| 5 Bedrooms | $4,907 |
| 6 Bedrooms | $5,496 |
| 7 Bedrooms | $5,936 |
| 8 Bedrooms | $6,233 |
U.S. Census Bureau data (2024)
Waipahu (ZIP 96797) is a historic Oahu community often recognized for its deep-rooted sugar mill history and its location along the Waipahu Transit Center, a major hub for TheBus. This neighborhood offers a mix of older single-family homes and newer developments, catering heavily to local families. The area maintains a strong connection to its plantation past while evolving into a residential suburb with convenient access to H-1, making it a practical location for commuters working at Pearl Harbor or in Downtown Honolulu.
From a data perspective, Waipahu presents a challenging spread for voucher landlords. The FY2026 Fair Market Rent for a 2-bedroom unit is $2,430, while current market rents (Zillow ZORI) sit at $2,657, leaving a negative gap of $227 between the subsidy ceiling and market rates. With median home values at $869,109 and days on market at 73, inventory moves moderately. Investors relying strictly on the 2-bedroom HUD payment standard may experience a monthly shortfall compared to market-rate leases.
Despite the rent gap, the tenant pool is anchored by solid fundamentals. The area boasts a 32.7% renter share and a median household income of $114,654, suggesting economic stability among residents. Families are drawn to the community for amenities like the Waipahu Public Library and the popular Waipahu Neighborhood Park, as well as access to well-regarded schools such as Waipahu High School. This family-oriented environment helps sustain consistent rental demand, even when voucher caps trail the open market.
The Section 8 verdict for Waipahu leans toward stability rather than maximum cash flow. While the 2-bedroom FMR trails market rates, the high median income and family-centric character imply that voucher holders are likely to have steady supplementary income to cover the gap. For investors with a median 2BR value of $496,747, the area offers a potential entry point into the Honolulu market with a tenant base prioritizing long-term housing over frequent moves.
Data Sources: FMR data from HUD (2027). 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.