Location: Kenai Peninsula Borough, AK | Metro: Kenai Peninsula Borough, AK
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 | $1,180 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,600 |
| 5 Bedrooms | $3,016 |
| 6 Bedrooms | $3,378 |
| 7 Bedrooms | $3,648 |
| 8 Bedrooms | $3,830 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,150 | $315,018 | 0.68% | D |
U.S. Census Bureau data (2024)
The ZIP code 99568 presents an interesting scenario for real-estate investment, particularly under the lens of Section 8 analysis. To determine whether it's a high-yield/low-stability market or a steady-cashflow zone, we must consider the factors of yield and stability.
Yield Analysis: The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,440. This figure is critical because it represents the maximum amount that a Section 8 voucher holder can pay for rent. However, the market rent for ZIP 99568 is not available, which suggests that there might be limited data on rental prices in this area. Despite this, the median home value in ZIP 99568 is $260,292, indicating a relatively affordable entry point for property acquisition. The combination of a known FMR and an accessible home value suggests a potential for moderate yield, assuming the actual market rent is close to or slightly below the FMR.
Stability Analysis: Stability in this context is gauged by the percentage of renters, the number of days on the market (DOM), and the average household income. With 4.8% of the population being renters, this indicates a low rental demand relative to homeownership, which could imply slower turnover rates and less volatility in rental income. Unfortunately, the day DOM data is unavailable, making it difficult to assess how quickly properties are rented out once they become vacant. The average household income of $85,000 provides a stable economic base, suggesting that tenants are likely to have a consistent ability to pay their rent.
Based on the available data, ZIP 99568 does not appear to be a high-yield/low-stability market. Instead, it seems to lean towards a steady-cashflow zone. The key figures driving this assessment include the $1,440 FMR, which sets a cap on potential rental income, and the $85,000 average household income, which supports financial stability among tenants. Additionally, the low percentage of renters (4.8%) suggests a market that is less prone to rapid changes in occupancy, favoring long-term investments over quick flips.
To conclude, while the median home value of $260,292 offers an opportunity for affordable acquisitions, the limited rental market size and the absence of specific market rent data indicate a preference for a strategy focused on steady cash flow rather than high-yield returns. Landlords and small-portfolio investors should expect moderate yields and prioritize property management practices that ensure long-term tenant retention and stability.
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.