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 | $2,750 |
| 1 Bedroom | $2,920 |
| 2 Bedrooms | $3,810 |
| 3 Bedrooms | $5,280 |
| 4 Bedrooms | $6,370 |
| 5 Bedrooms | $7,389 |
| 6 Bedrooms | $8,276 |
| 7 Bedrooms | $8,938 |
| 8 Bedrooms | $9,385 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,920 | $530,672 | 0.55% | F |
| 2BR | $3,810 | $769,807 | 0.49% | F |
| 3BR | $5,280 | $1,228,632 | 0.43% | F |
| 4BR | $6,370 | $1,533,509 | 0.42% | F |
| 5BR | $7,389 | $1,814,671 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 96825, located in Honolulu, HI, presents an interesting scenario for both renters and landlords. The median household income in this area stands at a robust $153,210. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $3,562. This places significant pressure on households, especially considering the high cost of living in Honolulu.
In comparison, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $3,580. This figure represents the maximum amount that a Section 8 voucher holder can pay towards their housing costs. Essentially, the difference between the market rate and the voucher payment standard is minimal, indicating that landlords who accept vouchers will be receiving close to market rates.
The rental market in ZIP 96825 is relatively small, with only 16.8% of the 30,913 total population being renters. This suggests a competitive environment for landlords, as there is a limited pool of potential tenants. The affordability gap between median income and market rents means that many households might find it challenging to cover their housing costs without assistance, making them prime candidates for government-assisted housing programs like Section 8.
Landlords should consider the benefits of accepting Section 8 vouchers. While the process may involve additional paperwork and scrutiny, the financial impact is minimal given how close the voucher payment standard is to the market rate. Moreover, the competition for tenants could mean that holding out for cash-paying tenants might result in longer vacancy periods. In summary, landlords in ZIP 96825 should weigh the convenience of cash-paying tenants against the reliability of voucher payments, which closely match market rates and ensure a steady stream of 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.