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 | $1,310 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $3,070 |
| 5 Bedrooms | $3,561 |
| 6 Bedrooms | $3,988 |
| 7 Bedrooms | $4,307 |
| 8 Bedrooms | $4,522 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,400 | $295,717 | 0.47% | F |
| 2BR | $1,830 | $359,726 | 0.51% | F |
| 3BR | $2,540 | $455,805 | 0.56% | F |
| 4BR | $3,070 | $573,180 | 0.54% | F |
| 5BR | $3,561 | $718,038 | 0.5% | F |
U.S. Census Bureau data (2024)
Eagle River, AK, located in ZIP code 99577, is part of a prosperous suburban area characterized by a relatively low percentage of renters at 19.7%. The neighborhood boasts a median household income of $136,900, indicating a high standard of living among residents. Median home values in the area stand at $477,851, reflecting a robust housing market where property ownership is both desirable and attainable.
The rental economics in Eagle River, AK, present an interesting scenario. The Fair Market Rent (FMR) for ZIP code 99577 as of fiscal year 2024 is set at $2,000, which is notably lower than the actual market rent, measured by Zillow's Observed Rental Index (ZORI), at $2,171. This discrepancy suggests that while the government aims to keep rents affordable for Section 8 participants, the local market demands higher rates due to the overall economic strength and desirability of the area.
Given these conditions, Eagle River, AK, is more suitable for hands-on value-add buyers rather than hands-off operators. Landlords and small-portfolio investors who actively manage their properties can capitalize on the higher market rents, ensuring profitability while still adhering to Section 8 guidelines. On the other hand, hands-off operators might struggle with the limited potential for profit given the gap between FMR and market rent. Active involvement in property management, including maintenance and strategic pricing, will be key to maximizing returns in this area.
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.