$ PlainPropertyTax

Honolulu County, HI

Rent vs Own in Honolulu County, Hawaii

Buying the median Honolulu County home costs roughly $5,013/mo against a $2,642/mo HUD rent, ownership runs well above the rent benchmark here, so the page focuses on why the stack is so heavy. Owner-occupied homes: 202,604.

🏘️
Renting is cheaper in Honolulu County

Ownership works out near $5,013/mo while a comparable 2-bedroom rents for $2,642/mo - a wide monthly miss for buyers. That is a $2,371/mo difference.

Based on 20% down, 6.5% rate, 30-year mortgage. Adjust below.

What This Data Tells Us About Renting vs Owning in Honolulu County

Primary driver

Home prices are extreme relative to local incomes

Median household income is $106,195, so the 8.5x home-price-to-income ratio is extreme even among expensive U.S. counties; property tax alone claims 2.4% of that income. Cash buyers, multi-income households, or a move well outside the median price band are the realistic paths, not a slightly larger down payment.

Decision signal 2

The tax rate is a national tailwind

Honolulu County's 0.28% effective rate is among the lowest of 3,135 tracked counties: roughly 99% pay a higher rate. That low tax line is one reason owning can compete here.

Decision signal 3

Ownership sits far above the rent benchmark

The $897,500 median home in Honolulu County carries $2,553/yr in tax at 0.28%. Against HUD's $2,642/mo 2-bedroom rent, the ownership stack (~$5,013/mo) is a wide miss - roughly $2,371/mo. Here the useful question is which line item (price, tax, or insurance) dominates the overage, not whether a small assumption change closes it.

Decision signal 4

Renting compares well inside the state

Using the assumptions above, Honolulu County ranks 3 of 4 Hawaii counties for buy-vs-rent value (rank 1 = the best relative deal for buying). It sits ahead of 1 other Hawaii counties on this measure.

Decision signal 5

HUD moved the rent benchmark down

HUD cut its 2-bedroom Fair Market Rent for Honolulu County from $2,687/mo in FY2025 to $2,642/mo in FY2026: it decreased by $45/mo (-1.7%). A falling benchmark narrows the case for buying here, and it usually reflects HUD re-estimating the local market rather than existing rents being cut.

Methodology & disclaimer

This calculator is for informational purposes only and is not tax, legal, or financial advice. Property tax figures come from the U.S. Census Bureau ACS 5-Year Estimates and rent figures come from HUD Fair Market Rents; both describe area medians, not individual transactions. Insurance is estimated at 0.35% of home value annually and closing costs, maintenance, HOA, and PMI are not included. Consult a licensed mortgage, tax, or real-estate professional before making a buy-or-rent decision based on these numbers.

Monthly Cost Breakdown

Estimated Monthly Ownership
$5,013
Mortgage (P&I) $4,538
Property Tax $213
Insurance (est.) $262
Monthly Rent (2-BR FMR)
$2,642
Studio$1,877
1-Bedroom$2,016
2-Bedroom$2,642
3-Bedroom$3,674
4-Bedroom$4,432

Adjust Your Scenario

Affordability Context

Median Household Income
$106,195
$8,850/mo
Home Price / Income
8.5x
Expensive (>5x)
Tax-to-Income Ratio
2.4%
National benchmark: 2-4%

Who actually pays it here

Even with the loan gone, the largest group of Honolulu County owners still owes $3,000 or more every year - a recurring holding cost of a few hundred dollars a month, which is why "paid off" understates the real cost of keeping property here.

Honolulu County matches the national pattern: six-figure earners between $100,000 and $200,000 account for more of these write-offs than any other local group.

When the ownership stack already sits far above HUD rent, that annual bill is less a tie-breaker and more confirmation that holding costs stay material long after the loan is gone.

Bill bands are Census ACS counts of owner-occupied homes without a mortgage. Income brackets are IRS Statistics of Income county data for tax year 2022, counted over FILERS reporting real-estate taxes on Schedule A, which is a smaller group than homeowners: most filers take the standard deduction.

Nearby Counties

Hawaii County
Home: $519,300 Tax: $1,459/yr
Maui County
Home: $904,700 Tax: $1,466/yr
Kauai County
Home: $873,200 Tax: $1,866/yr
Kalawao County
Home: N/A Tax: N/A/yr

Frequently Asked Questions

Is it cheaper to rent or buy in Honolulu County, Hawaii? ▼
Owning the median Honolulu County home is a wide miss versus HUD's 2-bedroom rent (about $2,371/mo more) on the standard stack. Treat this as a tenure/equity decision first; the cash-flow comparison alone will not favour buying here.
How much house can you afford in Honolulu County? ▼
On the common 3x-income guideline, a $106,195 household here can afford up to $318,585 -- about $578,915 short of this county's $897,500 median home. That gap is typically closed with a larger down payment, dual incomes, or a longer search outside the median price band.
What is the median home price in Honolulu County? ▼
$897,500, per the Census Bureau's ACS 5-Year Estimates. What stands out more than the price itself is the tax load on it: this county's 0.28% effective rate sits near the low end of the 3,135 counties tracked here.
What is the average rent in Honolulu County? ▼
HUD prices a 2-bedroom unit at $2,642/mo here. Sizing up matters: going from a studio to a 4-bedroom adds about $2,555/mo, so the per-bedroom jump is worth checking against your actual space needs before assuming the 2-BR figure applies to your situation.
How does Honolulu County compare to other Hawaii counties for renting vs buying? ▼
Out of 4 Hawaii counties ranked here on buy-vs-rent value, Honolulu County lands at spot 3, putting it in the more rent-favorable quarter of the state. The <a href="/states/hawaii">Hawaii state page</a> lists every peer county's tax bill beside this one.
Is rent going up or down in Honolulu County? ▼
HUD's 2-bedroom Fair Market Rent figure has fallen 1.7% between the FY2025 and FY2026 publications, the two most recent years tracked here.

Read our methodology - how this data is sourced, computed, and verified.

Data sourced from the U.S. Census Bureau (American Community Survey). See our methodology for details. Retrieved and formatted by PlainPropertyTax

Source: U.S. Census Bureau, Government Finances State and local property tax revenue by jurisdiction · 2025

Verify with HUD →