HI SCR157

Requests the Department of Business, Economic Development, and Tourism (DBEDT), in collaboration with the University of Hawaii Economic Research Organization (UHERO), to study the impact of federal Basic Allowance for Housing (BAH) on Hawaii's rental market conditions.

Hawaii hosts approximately 95,466 active-duty military personnel, family members, and adult dependents, with about 60% (approximately 14,700 homes) residing in the private rental market according to a 2024 Hawaii Housing Finance and Development Corporation study.

Current BAH rates for military members stationed in Hawaii range from $2,598 to $5,040 per month depending on rank and experience, which may contribute to upward rental price pressures in the supply-constrained market.

The study must examine whether rental prices cluster around BAH levels near military installations, analyze landlord pricing behavior, compare rental growth in high versus low military concentration areas, and assess potential displacement of local working families.

DBEDT must submit findings and recommendations to the Legislature no later than twenty days prior to the Regular Session of 2027, including policy options to mitigate market distortions while maintaining cooperative state-federal relations.