Location: Anchorage, AK | Metro: Anchorage, AK HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,220 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
U.S. Census Bureau data (2024)
The rental market in ZIP 99518, located in Anchorage, AK, presents a unique scenario when viewed from the perspective of potential renters. The median income in this area stands at $93,995, which provides a baseline for financial capability. However, the market rate rent, known as the Zillow Observed Rent Index (ZORI), is set at $1,730 per month. This figure represents the actual rent paid for a property, making it a critical metric for assessing affordability.
In comparison, the Fair Market Rent (FMR) for the zip code for fiscal year 2024 is $1,580. The FMR is the amount HUD uses to determine the maximum rent a household receiving federal housing assistance can be charged. For households participating in the Section 8 program, this means they will have a budget of up to $1,580 for their monthly rent.
Given that 42.3% of the population in ZIP 99518 are renters, and the total population is 9,764, there is a notable segment of the community that relies on affordable housing options. The difference between the market rate ($1,730) and the voucher payment standard ($1,580) creates an affordability gap for renters who do not receive subsidies. This gap impacts the competition among landlords, as those willing to accept voucher payments may attract a larger portion of the rental market.
The takeaway for landlords considering their strategy regarding voucher vs. cash-pay tenants is clear. Accepting voucher payments can provide a steady stream of income, albeit slightly below market rates. However, given the high proportion of renters and the median income level, landlords might also find success with cash-paying tenants willing to meet the higher market rate. The decision should weigh the stability of voucher payments against the potential for higher revenue from cash-paying tenants.
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.