Section 8 Fair Market Rent (FMR) for ZIP 96804 - 2027
Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,830 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,540 |
| 3 Bedrooms | $3,520 |
| 4 Bedrooms | $4,250 |
| 5 Bedrooms | $4,930 |
| 6 Bedrooms | $5,522 |
| 7 Bedrooms | $5,964 |
| 8 Bedrooms | $6,262 |
To determine if a landlord should invest in ZIP 96804 (Unknown, HI) for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $2390 cover the debt service on a property?
- Yes: Proceed to the next question. This indicates that the rent can potentially cover your mortgage payments and other expenses.
- No: Do not invest. The FMR is insufficient to cover the costs associated with owning a property in this area.
2) Is the market rent above, at, or below the FMR of $2390?
- Above: The market rent exceeds the FMR, which means you could potentially earn higher rents outside of Section 8. However, if you are specifically interested in Section 8 tenants, proceed to the next question.
- At: The market rent equals the FMR, making it competitive for both market-rate and Section 8 tenants. Continue to the next question to evaluate tenant demand.
- Below: The market rent is lower than the FMR, which might indicate an oversupply of rental units or a need for property improvements to justify the FMR. This situation is less favorable for investment unless you can add value to the property.
3) Are the percentage of renters and the days on market (DOM) sufficient to ensure demand?
- It Depends: Without specific data on the percentage of renters and DOM, it's difficult to provide a clear yes or no. Evaluate the local housing market trends and competition. A high percentage of renters and low DOM suggest strong demand, whereas the opposite would indicate weak demand.
Note: The lack of specific figures for market rent, percentage of renters, and DOM makes it challenging to give a definitive recommendation. Conduct additional research to gather these crucial pieces of information before making a final decision.
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.