Location: Anchorage, AK | Metro: Anchorage, AK HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,640 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $3,170 |
| 4 Bedrooms | $3,830 |
| 5 Bedrooms | $4,443 |
| 6 Bedrooms | $4,976 |
| 7 Bedrooms | $5,374 |
| 8 Bedrooms | $5,643 |
U.S. Census Bureau data (2024)
The ZIP code 99505, located in Anchorage, AK, represents a strategic opportunity within a Section 8 portfolio due to its characteristics as an appreciation play. This designation is based on the significant spread between the Fair Market Rent (FMR) and the market rent, which indicates potential for rental rate increases as the local market adjusts.
In fiscal year 2024, the HUD-determined FMR for ZIP 99505 is set at $2180. However, the current market rent stands at $2463, a difference of $283 per month. This gap suggests that properties in this area can potentially command higher rents over time, aligning with the broader trend of increasing housing costs in Anchorage.
While the median home value is not available, the median income for the area is reported at $100,781. This high median income supports the potential for rental appreciation, as tenants with higher incomes may be willing to pay more for quality housing. Furthermore, the fact that 100.0% of the population are renters underscores the strong demand for rental properties in this area, making it a prime location for investment.
The lack of data on price-cut share and days on market (DOM) does not detract from the appreciation potential of this ZIP code. Instead, it highlights the need for thorough local market analysis to understand the nuances of property management and tenant acquisition in this specific area.
A Section 8 portfolio strategy should consider ZIP 99505 as an appreciation play due to the substantial difference between the FMR and market rent, coupled with a high median income and a fully rented market. This combination creates an environment where rental rates are likely to rise, providing a solid foundation for long-term investment growth.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.