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 | $2,300 |
| 1 Bedroom | $2,450 |
| 2 Bedrooms | $3,190 |
| 3 Bedrooms | $4,420 |
| 4 Bedrooms | $5,330 |
| 5 Bedrooms | $6,183 |
| 6 Bedrooms | $6,925 |
| 7 Bedrooms | $7,479 |
| 8 Bedrooms | $7,853 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,450 | $458,128 | 0.53% | F |
| 2BR | $3,190 | $651,621 | 0.49% | F |
| 3BR | $4,420 | $1,293,769 | 0.34% | F |
| 4BR | $5,330 | $1,490,605 | 0.36% | F |
| 5BR | $6,183 | $1,696,422 | 0.36% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 96815, Honolulu, HI, reveals a market where pricing power remains firmly in the hands of sellers. With a median home value of $509,202, only a minuscule 0.1% of listings have been reduced, indicating that properties are holding their value exceptionally well. This stability is further underscored by the median days on market (DOM) of 83 days, suggesting that homes are selling relatively quickly once listed, without significant price adjustments.
The implication for landlords and small-portfolio investors is clear: there is little pressure to reduce rents or property values in the near future. The Federal Market Rent (FMR) for ZIP 96815 in fiscal year 2024 is set at $2,820, while the actual market rent, measured by Zillow's Observed Rental Index (ZORI), stands at $2,743. This slight premium for FMR over ZORI suggests a potential upward trend in rental rates, especially if the government adjusts its estimates based on rising market conditions. However, given the current tightness of the market, it is unlikely that substantial increases will occur, but maintaining current rents should be feasible.
Long-term investors in ZIP 96815 can expect steady appreciation rather than explosive growth. The low percentage of listings being reduced, coupled with the quick sale times, indicates a robust demand for housing in the area. While appreciation may not be as rapid as in other markets, the consistent demand for both homeownership and rentals provides a solid foundation for gradual value increases. The setup implies that properties will retain their value and likely see modest gains over the next 12-24 months, making it a reliable investment for those looking to build a portfolio with stable returns.
In summary, the combination of high median home values, minimal listing reductions, and short DOM periods points to a strong seller's market. The slightly higher FMR compared to the ZORI signals a potential for maintaining or slightly increasing rental rates. Long-term investors can anticipate a realistic appreciation thesis grounded in sustained demand, ensuring that their investments remain valuable and generate consistent income.
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.