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 | $1,590 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,680 |
| 5 Bedrooms | $4,269 |
| 6 Bedrooms | $4,781 |
| 7 Bedrooms | $5,163 |
| 8 Bedrooms | $5,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,690 | $465,312 | 0.36% | F |
| 2BR | $2,200 | $758,282 | 0.29% | F |
| 3BR | $3,050 | $1,049,840 | 0.29% | F |
| 4BR | $3,680 | $1,200,545 | 0.31% | F |
| 5BR | $4,269 | $1,313,803 | 0.32% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 96813 (Honolulu, HI) presents a nuanced landscape for landlords and small-portfolio investors. With a median home value of $660,154, the area maintains a high barrier to entry for potential homeowners, thereby reinforcing the demand for rental properties. The recent trend of only 0.2% of listings reducing their prices signals strong seller pricing power, suggesting that homes are holding their value well and are likely to continue doing so. This stability is further supported by a median days on market (DOM) of 61 days, indicating a brisk pace at which homes are selling and underscoring the resilience of the local housing market.
On the rental side, the Federal Market Rent (FMR) for ZIP 96813 in fiscal year 2024 is projected at $2,070, significantly below the current Zillow Observed Rental Index (ZORI) of $2,815. This gap suggests that rental prices are above government estimates, implying a robust rental market that can sustain higher rates. Landlords in the area have the opportunity to leverage this discrepancy, potentially increasing rents without losing tenants, as long as they remain competitive within the local market.
For long-hold investors, the setup in ZIP 96813 points towards a realistic appreciation thesis. The combination of high median home values, low price reductions, and a relatively short DOM indicates a market that is unlikely to experience significant downturns. Moreover, the strong rental dynamics provide a buffer against any potential softening in the sales market. Investors should focus on properties that offer both rental income and the potential for capital appreciation, given the market's current strength and future outlook.
However, it is crucial to monitor broader economic indicators and local market conditions. Honolulu’s economy, heavily reliant on tourism, could be impacted by global travel trends and economic fluctuations. Additionally, regulatory changes and supply-side factors such as new construction projects could alter the balance between home values and rental rates. Nonetheless, the current data supports a strategy of maintaining or slightly increasing property values and rents, aligning with the prevailing market conditions in ZIP 96813.
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.