Section 8 Fair Market Rent (FMR) for ZIP 99521 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 99521, located in Anchorage County, Alaska, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1450. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant receiving rental assistance under the Section 8 program.

To understand the actual payment structure, it's essential to break down the components involved. Tenants typically contribute 30% of their adjusted income toward rent. For instance, if a tenant's monthly income is $1000, they would be responsible for paying $300 towards rent. The remaining balance is covered by the Section 8 voucher, up to the SAFMR limit. Therefore, in this case, the housing authority would cover the rest of the rent, which is $1150.

In addition to the base rent, the Section 8 program includes utility allowances. These allowances vary but are generally intended to help cover the cost of utilities such as electricity, gas, water, and trash. However, the exact utility allowance for ZIP 99521 is not provided in the data. Landlords should note that these allowances are separate from the base rent reimbursement and can add to the total compensation received.

The SAFMR of $1450 is specifically tailored to this ZIP code, reflecting the local rental market conditions. Since the local market rent is listed as N/A, we cannot directly compare it to the SAFMR. However, landlords should be aware that the SAFMR is designed to ensure that rents are affordable for low-income families while also being fair to property owners.

To illustrate, let's assume a tenant's share of the rent is $300, and the utility allowance is $100. In this scenario, the total reimbursement from the housing authority would be $1150 (the difference between the SAFMR and the tenant's share) plus the utility allowance of $100, totaling $1250. This means the landlord would receive $1250 per month for a two-bedroom unit, assuming the tenant's income and the utility allowance remain constant.

The reimbursement gap or surplus is determined by comparing the SAFMR to the actual market rent. Given the lack of specific local market rent data, we cannot provide an exact surplus or gap figure. However, if the local market rent were higher than $1450, landlords would face a shortfall. Conversely, if the local market rent is lower than $1450, landlords could see a surplus, meaning they would receive more than the typical market rent for a two-bedroom unit.

In summary, landlords in ZIP 99521 can expect a Section 8 voucher to cover up to $1450 of the rent for a two-bedroom apartment, with tenants contributing 30% of their income and utility allowances adding to the total reimbursement. The actual financial impact will depend on the specific market conditions and the tenant's income level.

Data Sources: FMR data from HUD (2027).

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.