Section 8 Fair Market Rent (FMR) for ZIP 99550 - 2027

Location: Kodiak Island Borough, AK | Metro: Kodiak Island Borough, AK

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,580
1 Bedroom	$1,740
2 Bedrooms	$2,270
3 Bedrooms	$2,750
4 Bedrooms	$2,980
5 Bedrooms	$3,457
6 Bedrooms	$3,872
7 Bedrooms	$4,182
8 Bedrooms	$4,391

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

150

Median Household Income

$46,250

Housing Units

130

Renter Percentage

7.1%

Occupancy Rate

53.8%

Renter Occupied

To determine if a landlord should buy in ZIP code 99550 for Section 8 purposes, follow this decision tree based on the available data:

Does the Fair Market Rent (FMR) of $2,090 cover the debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not purchase. The FMR is insufficient to meet financial obligations.
Is the market rent above, at, or below the FMR?
- If above: Consider other factors, as the higher market rent could offset some risks.
- If at or below: This aligns well with Section 8 rates. Continue to the next step.
Are there sufficient renters and days on the market (DOM) to ensure demand?
- If the 7.1% of renters and N/A-day DOM indicate strong demand: Purchase is advisable given the alignment with FMR and sufficient tenant pool.
- If weak demand is indicated: Do not purchase. There is not enough rental activity to support a Section 8 investment.

The Fair Market Rent (FMR) of $2,090 for the metro area in fiscal year 2026 is the key figure to consider when evaluating whether a property can sustain debt service. If the FMR does not sufficiently cover the monthly mortgage payment and other expenses, investing in this ZIP code would be unwise.

The second consideration is the comparison between the market rent and the FMR. If the market rent is above the FMR, it suggests that properties might command higher rents outside of Section 8, which can be beneficial for landlords who might also cater to non-subsidized tenants. However, if the market rent is at or below the FMR, it indicates that the ZIP code is in line with what Section 8 tenants can afford, making it a suitable location for such investments.

Finally, the percentage of renters and the days on the market (DOM) provide insight into the demand for rental properties. With 7.1% of the population being renters and the DOM being N/A, landlords must assess if these figures indicate a robust rental market. Strong demand ensures that properties will be occupied, thereby providing a steady income stream. If demand is weak, landlords should reconsider their investment in this ZIP code.

In conclusion, the decision to invest in ZIP 99550 hinges on these three factors: FMR covering debt service, market rent relative to FMR, and sufficient rental demand. Only if all branches lead to a positive outcome should a landlord proceed with purchasing a property here for Section 8.

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.