Section 8 Fair Market Rent (FMR) for ZIP 99628 - 2027

Location: Dillingham Census Area, AK | Metro: Dillingham Census Area, AK

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$890
1 Bedroom	$1,030
2 Bedrooms	$1,130
3 Bedrooms	$1,570
4 Bedrooms	$1,850
5 Bedrooms	$2,146
6 Bedrooms	$2,404
7 Bedrooms	$2,596
8 Bedrooms	$2,726

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

679

Median Household Income

$50,625

Housing Units

255

Renter Percentage

30.7%

Occupancy Rate

58.8%

Renter Occupied

The Section 8 cap-rate analysis for ZIP code 99628 provides insight into potential investment opportunities. The Federal Market Rent (FMR) for a 2-bedroom apartment is set at $1,120 annually, based on the fiscal year 2026 metro rate. Meanwhile, the Census ACS indicates a market rent of $763 annually.

To derive the gross yield, we must first understand that the cap rate is calculated as the net operating income (NOI) divided by the property's value. However, since the median home value for ZIP 99628 is not available, we can only provide a theoretical framework based on the annual rents provided.

If we assume a median home value of $200,000 for the sake of illustration, the gross yields would be:

$1,120 FMR Scenario: The gross yield would be $1,120 / $200,000 = 0.56%, indicating a very low return if the property were valued at $200,000. This scenario is less likely given the higher-than-average FMR compared to typical market conditions.
$763 Market Rent Scenario: The gross yield would be $763 / $200,000 = 0.38%, suggesting an even lower return on investment. This scenario aligns more closely with the actual market rent data but still assumes a median home value that may not reflect the true cost of properties in 99628.

The 30.7% renter density in ZIP 99628 implies a significant portion of the population is already renting, which could indicate strong demand for rental properties. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties can be leased out, impacting the reliability of the assumed median home value.

Given the data, the $763 market rent scenario is more realistic for calculating gross yields. Landlords and small-portfolio investors should consider these figures when evaluating the potential profitability of properties in ZIP 99628 under Section 8 guidelines.

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.