TurboTenant Report: The Best Places to Buy Rental Investment Property in Hawaii

best places for rental investment in hawaii

In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Hawaii. Three towns made our list: Honolulu, Kihei, and Wailuku. We curated data from studies on the best places to buy an investment property, median sale prices, and proprietary TurboTenant data. The TurboTenant Data includes stats on the average number of leads a rental property received, as well as the average number of days on the market. These two points will help an investor determine the strength of the rental market, as well as estimating potential vacancy rates. 

Hawaii is truly paradise – there are 137 islands, islets and shoals that make up the whole Aloha State. It’s ripe with a beautiful geography of beaches, volcanoes, mountains, rivers, and so much more. With an average annual temperature of 75 degrees, you can’t go wrong. Hawaii has eight main islands including Oahu, Hawaii, Maui, and Kauai – all of which have their own unique cultures, terrain, and traditions. Since the state sits at the northern tip of the Polynesian Triangle, Polynesian culture, food, and festivals are popular as well as many other ethnicities. Fun fact: it’s still growing, literally, and it’s the only place that hosts all branches of the U.S. military. Hawaii’s economy is strongly dependent on tourism, defense, and agriculture which brings many local and transplants to the islands.

Hawaii’s remote location and amazing amenities mean that it is more expensive than many states. Regardless of this, property investors can consider both long-term and short-term property investments as renters and visitors rely on great rental properties. Say Aloha to the best places to buy a rental investment property in Hawaii. 

#3: Honolulu

Honolulu is located on the beautiful island of Oahu, also known as The Gathering Place. As the capital of Hawaii, Honolulu provides an urban environment as well as rural and natural communities. Stretching out across the southeastern shores of the island, you can visit historical Pearl Harbor, Makapuu Point, or Waikiki Beach. Honolulu is home to the majority of Oahu’s population where landlords can expect 22 leads per property and around two weeks on the market – while the median sale price is a little higher at $585k, landlords won’t have a problem filling their properties to reach a great ROI. Hula your way to great properties in the heart of Hawaii.

  • Population growth: -1.2%
  • Employment growth: -2.8%
  • Increase in home values: -4.8%

Median Sale Price: $585k

Average Rent: $2148

Average Number of Leads per Property: 22

Number of days on the rental market: 15

#2: Kihei

Kihei is located on the sunniest end of Maui’s southwest shore – it offers six miles of gorgeous beaches, great snorkeling, and kayaking. Maui is known as the Valley Isle for its large isthmus and many large valleys between its mountains. Kihei has a bustling farmer’s market, affordable accommodations for residents and visitors, and is a great environment for kids with many activities and sport areas. The population is slowly, but steadily growing in Kihei as it’s one of the most desired places to live on Maui – landlords can expect only nine days on the rental market with a solid 19 leads. 

  • Population growth: 0.9%
  • Employment growth:-2.6%
  • Increase in home values: -8.4%

Median Sale Price: $609k

Average Rent: $2420

Average Number of Leads per Property: 19

Number of days on the rental market: 9

#1: Wailuku

Wailuku is located in a strategic position on Maui – it’s just 10 minutes from the Kahului Airport and is the county seat of Maui county. It’s famous for its unique local businesses, many of which are still family-owned and have been in operation for generations – you can find local craft shops, restaurants, and bakeries. Wailuku has a huge art community, historic attractions, and is located at the foot of the West Maui Mountains and is the gateway to the beautiful and sacred Iao Valley. Wailuku has the most affordable rent out of all of our Hawaii towns and is seeing a steady population growth at 0.9% – don’t let Hawaii’s high home prices stop you from investing as landlords have the highest amount of leads in Wailuku at 30 on average with only nine days on the market. These numbers are great for Hawaii which is why Wailuku is our #1 place to invest in The Aloha State.

  • Population growth: 0.9%
  • Employment growth: -2.6%
  • Increase in home values: -28%

Median Sale Price: $581k

Average Rent: $2072

Average Number of Leads per Property: 30

Number of days on the rental market: 9

Once you’ve landed the perfect investment property in a good location, TurboTenant can help take your landlording into the digital world by streamlining the rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.

About the TurboTenant Report

The TurboTenant Report analyzes data from active listings across all 50 states, as well as third party real estate, population and employment growth data. Our goal with the TurboReport is to empower seasoned and novice investors to make wise purchasing decisions when purchasing a rental investment property. For more information or custom data requests, please contact press@turbotenant.com.

Methodology:

In order to determine the best cities to invest in each state, we curated data from a number of reputable sources as well as using TurboTenant proprietary data. Our main city selections were taken from a study that evaluated four main factors for each city: employment growth, population growth, increase in home values and rental yield. We combined that with TurboTenant data on the average rent price, the number of rental leads per property, as well as the average number of days the rental stays on the market.

We also included an honorable mention where applicable. They are pulled from this study on the best places to invest in every state. These were determined using Zillow’s Buyer-Seller Index and Zillow Home Value Forecast, and AreaVibes’ Livability Score. Other methods for determining honorable mentions include using TurboTenant proprietary data to determine which cities return the best rental investment R.O.I. using data points including days on market, the number of leads per property, and average rent price.

DISCLAIMER: TurboTenant, Inc does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise.

Sources: 

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Sarnen Steinbarth

CEO & Founder TurboTenant, Inc

Sarnen has been investing in rental property since the age of 19. He saw firsthand the need for an easy-to-use and affordable technology backed solution geared towards independent landlords. In October of 2015, he launched TurboTenant. Today TurboTenant serves 200,000+ landlords and is still dedicated to making the rental process easy, smooth, and hassle-free. Sarnen is a regular contributor on Forbes and Bigger Pockets and has firmly positioned himself as thought leader in the real estate and proptech space.

Guidelines for using these data.

You are welcome to use any of the data in this report for your own purposes, we just kindly ask that you properly cite the source. 

An example citing: According to a report by TurboTenant, an online property management software company….

If you have data requirements that are outside the scope of this article, please email press@turbotenant.com. We have a plethora of data and are happy to supply another data set if it is available.

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