Location: Anchorage, AK | Metro: Anchorage, AK HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,170 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,720 |
| 5 Bedrooms | $3,155 |
| 6 Bedrooms | $3,534 |
| 7 Bedrooms | $3,817 |
| 8 Bedrooms | $4,008 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,250 | $163,870 | 0.76% | D |
| 2BR | $1,630 | $287,778 | 0.57% | F |
| 3BR | $2,260 | $425,506 | 0.53% | F |
| 4BR | $2,720 | $530,863 | 0.51% | F |
| 5BR | $3,155 | $720,317 | 0.44% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 99507 in Anchorage, AK, hinges on the analysis of its yield and stability metrics. With a Fair Market Rent (FMR) of $1,570 for the fiscal year 2024, the area stands out compared to the local market rent of $1,986. This indicates that properties receiving Section 8 assistance can still offer competitive yields, albeit at a lower rate than the market average.
The median home value in ZIP 99507 is $412,953. Given the FMR, an investor can expect a monthly rental subsidy that is significantly below the market rent, which allows for potential profitability even with a lower market rent. However, the gap between the FMR and market rent also suggests that the property might not be as attractive to non-Section 8 tenants, potentially impacting vacancy rates and long-term stability.
In terms of stability, ZIP 99507 has a substantial percentage of renters at 28.0%, indicating a reasonable demand for rental housing. The Days on Market (DOM) figure of 6 days is quite low, suggesting quick turnover and strong interest in available rentals. Additionally, the median household income of $107,992 provides insight into the economic health of the area, which supports a diverse rental market.
Based on these figures, ZIP 99507 leans towards being a steady-cashflow zone. While it is not a high-yield market due to the disparity between FMR and market rents, the quick turnover and significant portion of renters provide a stable tenant pool. The median income supports both Section 8 and market-rate rentals, reducing the risk of default and ensuring a consistent cash flow. However, the relatively high home values mean that flipping properties for profit is less likely to be successful, as the cost of entry is high and the rental income does not fully compensate for the higher property costs.
To summarize, ZIP 99507 offers a balanced opportunity for landlords and small-portfolio investors looking for a stable investment with moderate yields. The key drivers for this classification are the FMR of $1,570, median home value of $412,953, 28.0% renters, quick 6-day DOM, and median income of $107,992.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.