Section 8 Fair Market Rent (FMR) for ZIP 96860 - 2027
Location: Urban Honolulu, HI | Metro: Urban Honolulu, HI MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $2,310 |
| 1 Bedroom | $2,450 |
| 2 Bedrooms | $3,190 |
| 3 Bedrooms | $4,430 |
| 4 Bedrooms | $5,340 |
| 5 Bedrooms | $6,194 |
| 6 Bedrooms | $6,937 |
| 7 Bedrooms | $7,492 |
| 8 Bedrooms | $7,867 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$N/A
To determine if you should buy in ZIP code 96860 for Section 8 investment, follow this decision tree:
- 1) Does FMR $3130 cover debt service?
- Yes: If your property's debt service (including mortgage payments, insurance, maintenance, etc.) is less than $3130, then the Fair Market Rent (FMR) can support your investment.
- No: If your debt service exceeds $3130, the FMR will not be sufficient to cover your expenses, making this location unsuitable for a Section 8 investment.
- 2) Is market rent above, at, or below FMR?
- Above FMR: If the market rent is higher than $3130, consider whether you want to focus strictly on Section 8 tenants or open up to a broader market. Higher market rents might indicate opportunities outside of Section 8.
- At FMR: If market rent matches the FMR, this indicates that the area is well-aligned with Section 8 rates, providing a stable income source.
- Below FMR: If market rent is lower than $3130, it suggests that the rental market is undervalued compared to the FMR, which could be advantageous for Section 8 landlords.
- 3) Is there enough demand?
- N/A% Renters: The percentage of renters in the area is critical. A high percentage indicates strong demand, while a low percentage might mean fewer potential tenants.
- N/A-day DOM: Days on Market (DOM) is another key metric. Shorter DOM periods suggest that properties are rented quickly, indicating robust demand. Longer DOM periods imply a slower rental market.
- It Depends: If the percentage of renters is moderate and DOM periods are neither exceptionally short nor long, the decision hinges on other factors such as competition, vacancy rates, and tenant preferences.
The final decision on whether to invest in ZIP 96860 for Section 8 should be based on the alignment of these metrics with your financial goals and risk tolerance. Ensure you conduct thorough due diligence on local regulations and tenant demographics before proceeding.
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.