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 | $1,750 |
| 1 Bedroom | $1,860 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $3,350 |
| 4 Bedrooms | $4,040 |
| 5 Bedrooms | $4,686 |
| 6 Bedrooms | $5,248 |
| 7 Bedrooms | $5,668 |
| 8 Bedrooms | $5,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,860 | $359,354 | 0.52% | F |
| 2BR | $2,420 | $513,413 | 0.47% | F |
| 3BR | $3,350 | $821,155 | 0.41% | F |
| 4BR | $4,040 | $1,154,084 | 0.35% | F |
| 5BR | $4,686 | $1,467,487 | 0.32% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 96826 in Honolulu, HI, are significant and should be carefully considered. Firstly, tenant turnover can be a major issue. At a market rent of $1,897, tenants might prefer to move out when their voucher allows them to pay only $2,220, leading to frequent changes in occupancy. This can result in higher costs associated with re-leasing the property, such as advertising and background checks.
Vacancy exposure is another concern. With an average days on market (DOM) of 43 days, landlords may face periods where the property is unoccupied, resulting in lost rental income. Given the typical home value of $473,342 and a median income of $68,296, there's also a risk of deferred maintenance. Tenants may not have the financial capacity to cover the cost of necessary repairs, leaving landlords to shoulder these expenses.
However, these risks are offset by the high concentration of renters in the area. The renter share stands at 66.2%, indicating a robust demand for rental housing. This typically translates into a strong interest in Section 8 vouchers, which can help stabilize occupancy rates and ensure a steady stream of rental income. The high renter density also suggests that there will likely be a continuous pool of potential tenants, reducing the impact of any single tenant's departure.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.