Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,490 |
| 1 Bedroom | $2,650 |
| 2 Bedrooms | $3,450 |
| 3 Bedrooms | $4,780 |
| 4 Bedrooms | $5,770 |
| 5 Bedrooms | $6,693 |
| 6 Bedrooms | $7,496 |
| 7 Bedrooms | $8,096 |
| 8 Bedrooms | $8,501 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 96853 in fiscal year 2024 is set at $2900. This figure represents the average rent that a tenant could afford under the Section 8 program. However, it does not guarantee coverage of the mortgage on a property. According to recent real estate data, the median home value in ZIP 96853 is not explicitly stated, but given the high cost of living in Honolulu, it is likely substantial. To determine if the FMR will cover the mortgage, you must compare it against the monthly mortgage payments, which include principal, interest, taxes, and insurance. If the FMR falls short, the landlord may need to consider alternative financing options or seek additional sources of income.
The rental vacancy rate in ZIP 96853 is not directly provided in the data, but the area is known for having a relatively low vacancy rate due to its strategic location near Hickam Air Force Base. This suggests strong demand from military personnel and their families who often require housing assistance. With the presence of a significant number of potential tenants, it is reasonable to assume that there is sufficient demand at the FMR rate. However, landlords should be aware that the competition for tenants can be fierce, and maintaining properties to meet the standards of the Section 8 program is essential to attract and retain these renters.
The concern over whether Section 8 vouchers will keep pace with market rents is valid. While the FMR is adjusted annually based on changes in the local housing market, it may not always reflect the rapid increases seen in highly competitive markets like Honolulu. The data does not provide a direct comparison between the growth of market rents and the adjustment of FMRs, making it difficult to predict future trends with certainty. Landlords should monitor both the local rental market and updates to the FMR to ensure they remain financially viable. In some cases, landlords might find it necessary to supplement the voucher amount with additional rent from tenants to cover operating costs and maintain profitability.
In summary, while the FMR of $2900 provides a benchmark for affordable housing in ZIP 96853, it may not fully cover the mortgage on a property. There is likely enough demand from renters, especially those affiliated with Hickam Air Force Base, but keeping up with market rents requires vigilance. Landlords must stay informed about local real estate conditions and be prepared to adjust their strategies accordingly.
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.