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MarketsHawaiiHilo

Cap Rate Analysis: Hilo, HI

Investment metrics, interactive calculators, and data-driven analysis for Hilo rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Moderate — source deals carefully
Based on $560,000 median price and $2,490/mo median rent
Est. Cap Rate
4.03%
1% Rule
0.44%
Fails
GRM
18.7x
Price / Income
6.7x

Market Data

Median Home Price$560,000
Median Monthly Rent$2,490
Property Tax Rate0.28%
Population50,000
Population Growth0.2% / yr
Median Household Income$84,200
Vacancy Rate4.2%
Annual Appreciation2%

Cap Rate Calculator — Hilo

Pre-filled with Hilo medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.28% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.47%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$19,433
net operating income
Gross Rent Multiplier
18.7x
High (>15)
1% Rule
0.44%
✗ Fails
Monthly Cash Flow
$1,619
before debt service
Annual Breakdown
Gross Rental Income$29,880
Less Vacancy−$1,255
Effective Income$28,625
Less Operating Expenses−$9,192
Net Operating Income$19,433
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Cash-on-Cash Return — Hilo

Factor in financing to see your actual return on invested capital in Hilo.

$
$140,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.90%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$156,800
$140,000 down + $16,800 closing
Monthly Mortgage
$2,738
on $420K loan
Monthly Cash Flow
$-1,294
after all expenses
Annual Cash Flow
$-15,529
before taxes
Cash Flow Breakdown
Monthly Rent$2,490
Less Expenses−$1,046
Less Mortgage−$2,738
Monthly Cash Flow$-1,294

Is Hilo a Good Place to Invest in Rental Property?

Hilo, HI has a population of 50,000 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $560,000 paired with median rents of $2,490/mo produces an estimated cap rate of 4.03%.

Property taxes at 0.28% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.2% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 6.7x, homes cost about 6.7 times the local median income of $84,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Hilo presents moderate opportunities. Cap rates near 4.03% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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