Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA
| 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 |
The ZIP code 96805 in Unknown, HI presents several challenges for landlords and small-portfolio investors considering Section 8 investments. Firstly, tenant turnover can be problematic when comparing the market rent to the Fair Market Rent (FMR) of $2390 set for FY 2024. The lack of specific market rent data suggests that local rental rates might not align with the FMR, leading to potential difficulties in attracting and retaining tenants who qualify for the program.
Vacancy exposure is another concern due to the absence of specific data on days on market (DOM). This indicates that there is insufficient information about how quickly properties in this area are rented out, which is critical for assessing the risk of extended vacancies. Extended periods without tenants can significantly impact cash flow and profitability.
Deferred maintenance exposure also poses a threat. Without specific figures on typical home values and median incomes, it's challenging to gauge the financial capacity of residents to maintain their homes properly. Poor maintenance can lead to higher repair costs and potential safety hazards, increasing the overall risk for landlords.
However, these risks must be weighed against the high proportion of renters in the area, indicated by the unspecified percentage of the renter share. High renter density often correlates with a greater demand for housing vouchers, potentially stabilizing occupancy rates and reducing the risk of vacancies.
In conclusion, the ZIP code 96805 in Unknown, HI presents a moderate risk for a first-time Section 8 landlord, given the unknowns regarding market rent, days on market, and deferred maintenance, but with the potential benefit of high renter demand.
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.