Section 8 Fair Market Rent (FMR) for ZIP 99588 - 2027

Location: Copper River Census Area, AK | Metro: Matanuska-Susitna Borough, AK HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$920
1 Bedroom	$1,040
2 Bedrooms	$1,250
3 Bedrooms	$1,730
4 Bedrooms	$2,090
5 Bedrooms	$2,424
6 Bedrooms	$2,715
7 Bedrooms	$2,932
8 Bedrooms	$3,079

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,037

Median Household Income

$110,136

Housing Units

1,246

Renter Percentage

35.4%

Occupancy Rate

38.8%

Renter Occupied

171

To determine if you should buy in ZIP code 99588 for Section 8 investments, follow this decision tree:

Does the Fair Market Rent (FMR) of $1130 cover the debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not invest in this area for Section 8 properties. The rental income will not be sufficient to meet your financial obligations.
Is the market rent of $1,325 above, at, or below the FMR?
- If above: This indicates that properties can potentially command higher rents than what is allowed under Section 8. It suggests there might be better opportunities outside of Section 8 in this market.
- If at or below: Continue to the next question. The market conditions align well with Section 8 limits, making it a viable option.
Are the demographics supportive of demand? With 35.4% of residents being renters and the days on market (DOM) not specified, evaluate the demand.
- If there is enough demand based on the rental percentage and days on market: Investing in Section 8 properties in ZIP 99588 is advisable. The rental population is substantial, indicating a strong potential tenant pool.
- If the demand is insufficient: Consider other areas where the tenant pool is larger or where properties turn over faster, ensuring a steady stream of Section 8 tenants.

The Fair Market Rent of $1130 must first be compared against the debt service of any prospective property. If the FMR does not sufficiently cover the debt service, investing in this ZIP code would result in a loss, regardless of the other factors.

Next, assess the market rent of $1,325. Since this is above the FMR, it signals that landlords could earn more by renting outside the Section 8 program. However, if the market rent were closer to or below the FMR, the alignment between market conditions and Section 8 limits would make the investment more attractive.

Lastly, evaluate the demand. With 35.4% of the population renting, there is a significant base of potential tenants. However, without knowing the average days on market, it's difficult to gauge how quickly properties are leased. If the DOM is low, it implies a robust demand, supporting a positive investment decision. Conversely, high DOMs suggest a weaker market for rentals, which could lead to prolonged vacancies and reduced income.

In conclusion, if the FMR covers the debt service and the market rent is aligned with Section 8 limits, coupled with a strong demand indicated by low DOMs, then the answer is yes, you should consider buying in ZIP 99588 for Section 8 investments. Otherwise, the decision shifts towards no or it depends, based on the specifics of the property and market conditions.

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.