Section 8 Fair Market Rent (FMR) for ZIP 96819 - 2027

Investment Score for ZIP 96819

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,780
1 Bedroom	$1,890
2 Bedrooms	$2,460
3 Bedrooms	$3,410
4 Bedrooms	$4,110
5 Bedrooms	$4,768
6 Bedrooms	$5,340
7 Bedrooms	$5,767
8 Bedrooms	$6,055

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,460	$464,855	0.53%	F
3BR	$3,410	$973,184	0.35%	F
4BR	$4,110	$1,116,661	0.37%	F
5BR	$4,768	$1,193,695	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 96819 (Honolulu, HI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 96819 in Honolulu, HI, is set to reflect the average rent levels for various housing types in the area. For 2026, the FMRs are as follows: - 0BR: $1650 - 1BR: $1770 - 2BR: $2320 - 3BR: $3230 - 4BR: $3890 These figures represent the maximum amount that a Section 8 voucher holder can pay towards their rent. However, comparing these FMRs to actual rental prices in the market reveals significant discrepancies. The Zillow median price for a 2BR unit in this ZIP code is $464,348, which translates to a monthly mortgage payment of approximately $2,170 based on a 30-year fixed-rate mortgage at 4.5%. This is already above the FMR of $2,320 for a 2BR unit, indicating that voucher holders would struggle to find units within their budget. Additionally, the price-to-FMR ratio for a 2BR unit is 16.7x, meaning that the median home value is nearly 17 times higher than the FMR. This suggests that the rental market is significantly more expensive than what the vouchers cover, placing a substantial financial burden on voucher holders who might have to pay additional out-of-pocket expenses to meet the actual rent costs. #### Affordability & Renter Profile ZIP code 96819 has a population of 50,345, with 49.2% of residents being renters. The occupancy rate stands at 92.7%, indicating a relatively tight rental market where most available units are occupied. Given the median household income of $99,848, it is clear that the majority of residents have higher incomes, making them less reliant on rental assistance programs like Section 8. However, the affordability of housing remains a critical issue. The FMR for a 2BR unit represents only 27.9% of the median income, suggesting that even without the need for rental assistance, many residents might still find it challenging to afford housing in this ZIP code. The high rent-to-income ratio indicates that the market is skewed towards higher-end rentals, which could be problematic for lower-income families relying on Section 8 vouchers. #### Investor Angle From an investor's perspective, the ZIP code 96819 presents both opportunities and challenges. The FMRs provide a baseline for rental pricing, but the actual market rents are much higher. A 2BR unit renting at the FMR of $2,320 would generate a gross rent of $27,840 annually. However, given the median home value of $464,348, the monthly mortgage payment would be around $2,170, leaving little room for profit unless the property is leveraged with low-cost financing or has other cost-saving features. The investment grade of properties in this ZIP code would likely be considered moderate to high risk due to the limited number of potential tenants who can afford the FMR. Investors should carefully evaluate the local market dynamics and consider the possibility of having to accept lower rental rates than the FMR to attract tenants, which could impact cash flow negatively. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units have FMRs of $1,650 and $1,770 respectively, which are closer to the actual rental prices in the market. This strategy could help mitigate the risk of vacancy and ensure better cash flow. 2. **Consider Location-Specific Strategies**: While the overall market is tight, certain sub-markets within ZIP 96819 might offer better opportunities. Investors should look into neighborhoods with slightly lower median home values or areas with a higher concentration of lower-income households. This could increase the likelihood of finding tenants who can utilize Section 8 vouchers effectively. 3. **Explore Alternative Financing Options**: Given the high cost of housing, traditional financing might not yield optimal returns. Investors should explore alternative financing options such as hard money loans, private lending, or creative financing arrangements that can reduce the monthly mortgage burden and improve cash flow. #### Bottom Line For Section 8-focused investors, ZIP code 96819 presents a challenging environment due to the high cost of housing and the limited number of potential tenants who can afford the FMR. The recommendation for this ZIP code is to **Skip** investing in larger units and instead focus on smaller units where the FMR is closer to the actual rental prices. However, even with these strategies, the overall market conditions suggest that the risk is high, and the potential for consistent cash flow is uncertain. Therefore, a cautious approach is advised, and investors should thoroughly vet any potential investments before committing capital.

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.