Rental Property for Hawaii (2026)
Hawaii (HI) Key Facts
Average Cap Rate
3.5%
Average 1 B R Rent
$1,800
Rent to Price Ratio
2.54%
Landlord Friendly
Moderate
Average Property Tax Rate
0.28%
How This Calculator Works in Hawaii
This rental property calculator helps you analyze potential investment properties in Hawaii by estimating cash flow, cap rate, and return on investment. It is pre-loaded with Hawaii's average rent and property values so you can quickly evaluate whether a property meets your investment criteria. Adjust the rental income, expenses, and financing terms to match a specific property.
Hawaii Overview
Hawaii offers a cap rate of 3.5% with median home prices of $850,000 and average 1BR rents of $1,800/month. Hawaii leans tenant-friendly, with stronger renter protections and longer eviction timelines. Factor this into your risk and vacancy assumptions. There is no statewide rent control, allowing market-rate adjustments at lease renewal.
How Hawaii Compares
Hawaii's cap rate of 3.5% is lower than most neighboring states, reflecting higher property values. California has a cap rate of 4% and Alaska has a cap rate of 5.5%. Investors often compare multiple states to find the best risk-adjusted returns for their strategy.
| State | Top Rate | Notes |
|---|---|---|
| California | 4% | Average cap rate of 4% with median home price of $750,000 and average 1BR rent of $2,000. Tenant-friendly state. |
| Alaska | 5.5% | Average cap rate of 5.5% with median home price of $370,000 and average 1BR rent of $1,150. Moderate landlord-tenant regulations. |
| Washington | 4.8% | Average cap rate of 4.8% with median home price of $570,000 and average 1BR rent of $1,600. Tenant-friendly state. |
Hawaii has an average cap rate of 3.5%, which is below average nationally, reflecting higher property values relative to rents. The rent-to-price ratio of 2.54% helps investors gauge monthly cash flow potential relative to the property's value.
Tips for Hawaii Residents
- 1The average cap rate in Hawaii is 3.5%. This is below the national average, suggesting investors should weigh appreciation potential alongside cash flow.
- 2Hawaii leans tenant-friendly, with stronger renter protections and longer eviction timelines. Factor this into your risk and vacancy assumptions.
- 3Hawaii does not have statewide rent control, allowing landlords to set and raise market-rate rents freely at lease renewal.
- 4Budget for operating expenses of 40-50% of gross rent in Hawaii, covering property taxes (0.28%), insurance, maintenance (1-2% of property value/year), vacancy (5-8%), and property management (8-10% of rent if hiring a manager).
- 5Average 1BR rent in Hawaii is $1,800/month against a median home price of $850,000. The rent-to-price ratio helps you quickly screen properties: higher ratios suggest better cash-flow potential.
Frequently Asked Questions
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