Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,820 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,520 |
| 3 Bedrooms | $3,490 |
| 4 Bedrooms | $4,210 |
| 5 Bedrooms | $4,884 |
| 6 Bedrooms | $5,470 |
| 7 Bedrooms | $5,908 |
| 8 Bedrooms | $6,203 |
U.S. Census Bureau data (2024)
The investment landscape in ZIP code 96848 presents several challenges for first-time Section 8 landlords. Tenant turnover is a significant concern, with the market rent at $587 being notably lower than the Fair Market Rent (FMR) of $2390 for FY 2024. This discrepancy suggests that tenants might be more transient, seeking temporary housing solutions or moving frequently due to financial instability.
Vacancy exposure is another critical issue. The lack of available data on days on market (DOM) indicates that there may be unpredictability in how quickly units can be filled once they become vacant. This uncertainty poses a risk as prolonged vacancies can lead to financial strain and missed rental income opportunities.
Deferred maintenance exposure is also a factor. Given the absence of specific information regarding the typical home value, it's essential to consider the median income of $21,042. This figure implies that residents might struggle to afford necessary repairs and maintenance, potentially leading to higher wear and tear on properties and increased costs for landlords to keep the units in good condition.
However, these risks are offset by the 100.0% renter share, which is exceptionally high. Such a high proportion of renters typically translates into robust demand for rental properties, including those that accept Section 8 vouchers. This strong demand can help mitigate the risks associated with vacancy and turnover, ensuring a steady stream of potential tenants.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 96848 is moderate. While there are notable risks related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density provides a solid foundation for sustained demand and occupancy rates.
Data Sources: FMR data from HUD (2027). 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.