Short answer: In Honolulu, HI, the median home value is $850,100 and the median 3-bedroom rents for $2,425/mo (Census ACS 2024). That's a rent-to-price ratio of 0.29%, so it misses the 1% rule and would place #46 among the 50 largest US rental markets (Honolulu is the #56 US city by renter households). With 20% down at 7.32%, FirstDoor scores a median-priced home Pass (−$3,333/mo cash flow).
Key numbers
The 1% rule in Honolulu
A quick screen many investors start with: is monthly rent at least 1% of the price? In Honolulu, here's the answer on typical numbers.
Across all rentals (not just 3-bedrooms) the ratio is 0.21%. A home renting for the median 3-bedroom rent would need to cost about $242,000 or less to pass.
A typical Honolulu home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.32%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $2,425 |
| Property tax ($2,669/yr, local median) | −$222 |
| Insurance ($4,250/yr, assumed) | −$354 |
| Vacancy 8% · Maintenance 5% · Management 8% | −$509 |
| Net operating income | $1,339 |
| Mortgage (P&I on $680,080 at 7.32%) | −$4,672 |
| Monthly cash flow | −$3,333 |
What price works in Honolulu?
Price is the lever you control. Holding rent at the Honolulu median, these are the price ceilings for each FirstDoor result.
Takeaways
- Honolulu's 0.29% ratio is well under the 1% rule (it would place #46 among the 50 largest). Most investors here are betting on appreciation, not monthly income.
- A median-priced home here would cost you about $3,333/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $310,000, 64% below the median.
- Prices are outrunning rents: home values rose 2.2% from 2023 to 2024 while 3-bedroom rent fell 8.7%. The 1% math got tougher.
- Rental vacancy is high at 8.5% (US: 5.7%), so we budgeted 8% vacancy instead of 5%. Price in a longer wait for tenants.
- Property taxes are light: the median bill is $2,669, about 0.31% of value versus 0.89% nationally.
Frequently asked questions
Does Honolulu pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $2,425/mo and the median home value is $850,100 (Census ACS 2024 1-year), a ratio of 0.29%. To pass at that rent, a home would need to cost about $242,000 or less.
What is the typical rent for a 3-bedroom in Honolulu?
The median gross rent for a 3-bedroom in Honolulu, HI is $2,425 a month, and $1,815 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median fell 8.7% from 2023.
Can you cash flow a rental in Honolulu?
At the median price, not easily. With 20% down at 7.32% and realistic expenses, a $850,100 home renting for $2,425 loses about $3,333/mo. It breaks even at roughly $310,000.
How much cash do you need to buy a typical rental in Honolulu?
About $195,520: a 20% down payment of $170,020 plus closing costs we assume at 3% ($25,500). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Honolulu a good place to buy a first rental?
FirstDoor scores a median-priced home in Honolulu as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
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Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 22, 2026. Retrieved October 15, 2026. Insurance ($4,250/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.