Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA
| 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 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 96858 reveals a complex picture regarding potential Section 8 cap rates, primarily due to the lack of complete data points. For a two-bedroom unit, the Fair Market Rent (FMR) for fiscal year 2024 is set at $2390 annually. However, without a specific median home value, it's challenging to derive an exact cap rate.
To provide some context, let's consider the FMR scenario. Assuming a median home value of $400,000 as a hypothetical benchmark, the annualized FMR of $2390 would imply a gross yield of approximately 0.6%. This figure is calculated by dividing the annual rental income by the property value. However, since the actual median home value is not provided, this calculation is based on a placeholder number and should be adjusted according to the specific property being analyzed.
In the absence of market rent data, we cannot compare the Section 8 gross yield to the typical market yield. The lack of market rent figures means that investors cannot gauge how competitive the Section 8 rents are relative to the broader rental market in ZIP 96858. Additionally, the unknown renter density percentage and days on market (DOM) complicate the assessment of the likelihood of finding tenants willing to pay market rates versus those who qualify for Section 8 assistance.
Given the incomplete data, it's important for investors to seek out local real estate agents or market analysts who can provide insights into the median home values and market rents specific to ZIP 96858. These details are crucial for making an informed decision about the viability of Section 8 properties in this area. Until these specifics are known, the gross yield derived from the FMR serves only as a baseline for comparison.
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.