Real Estate Investing in Kailua Kona, Hawaii (96740)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 96740 (Kailua Kona, HI)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 24.0% of homes vacant — above national norms.
What’s happening in Kailua Kona, HI (96740)?
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Market Analysis: 96740 Kailua Kona
Meanwhile, ZIP 96740 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $879K median. It rewards specialists, not generalists.
Rent of $2,948/mo on a $879K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 96740 sits below the stated 0.0% once reality is priced in.
The gap between 96740 and stronger Kailua Kona ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Who lives in 96740 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Strategy in 96740 is an operator game, not a passive one. From a cash-flow lens, entry prices of $879K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Kailua Kona:
Property Strategy for 96740
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $441,346 | $1,930 | 3.1% | +5.4% | $441,346 |
| 2BR | $666,431 | $2,500 | 2.7% | +8.1% | $333,215 |
| 3BR | $1,000,923 | $3,160 | 2.3% | +9.2% | $333,641 |
| 4BR | $1,411,352 | $3,640 | 1.9% | +10.3% | $352,838 |
| 5BR | $2,155,252 | — | — | +10.5% | $431,050 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 96740 Compare?
| Metric | 96740 | Kailua Kona | Hilo, HI | Hawaii |
|---|---|---|---|---|
| Home Value | $879,278 | $879,278 | N/A | $824,731 |
| 5-Year CAGR | 5.2% | 5.2% | N/A | 5.4% |
| Avg Rent | $2,948 | $2,948 | N/A | - |
| Cap Rate | 2.6% | 2.6% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 96740 (Kailua Kona, HI). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $879,278 |
| Monthly Rent | $2,948 |
| Price-to-Rent | 24.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.0% |
| Cap Rate | 2.6% |
| 5-Year IRR | 7.8% |
📈 Home Appreciation
| 1-Year | -1.4% ▼ |
| 3-Year CAGR | +0.1% ▲ |
| 5-Year CAGR | +5.2% ▲ |
| 10-Year CAGR | +5.8% ▲ |
🏠 Rent Trends
| 1-Year | +4.0% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.6%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 96740
Population: 40,805
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 96740
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
Should investors consider Kailua Kona, HI?
Kailua Kona, HI rates 3.0/5 for investability. With median values at $879K and rents near $2,948/mo, the market offers reasonable fundamentals for rental investors.
How strong is tenant demand in Kailua Kona, HI?
Kailua Kona, HI offers a predictable renter base at the $2,948/mo rent level. Tenant turnover is reasonable for well-managed properties.
How quickly do rentals get leased in Kailua Kona, HI?
Expect elevated vacancy in Kailua Kona, HI. Rents at $2,948/mo are absorbed by the tenant base without meaningful lag.
Is Kailua Kona, HI better for rentals, flips, or BRRRR?
Most investors in Kailua Kona, HI run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
How much rent can I charge in Kailua Kona, HI?
Expect rents around $2,948/mo per month in Kailua Kona, HI. With home values at $879K, the yield math works out to reasonable levels for rental investors.
You know 96740 now. You don’t know where it ranks.
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How 96740 ranks in Hilo, HI
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