Location: Kenai Peninsula Borough, AK | Metro: Kenai Peninsula Borough, AK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 99635 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1,310 per month for fiscal year 2026. However, due to limited data, the local market rent for 99635 is currently marked as N/A, which means we cannot directly compare it against the SAFMR figure without further investigation.
A Section 8 voucher does not cover the entire rent amount; instead, it reimburses the landlord for a portion of the rent based on the voucher holder's income. Typically, the voucher holder pays approximately 30% of their adjusted monthly income towards rent. This amount includes the tenant's share of utilities if they are covered under the voucher program. For example, if a tenant's monthly income is $2,000, they would pay about $600 towards rent and utilities.
The remainder of the rent, up to the SAFMR limit of $1,310, is then paid by the housing authority. If the tenant's share plus the utility allowance exceeds the SAFMR, the landlord will not receive additional funds beyond the $1,310 cap. Therefore, in ZIP 99635, a landlord can expect to receive a reimbursement of up to $1,310 for a two-bedroom unit, minus the tenant's contribution and any applicable utility allowances.
To illustrate, let's assume the utility allowance for a two-bedroom apartment is $200. If the total rent charged is $1,500, but the SAFMR is only $1,310, the landlord will still only receive a maximum of $1,310. In this case, the landlord would receive $710 from the housing authority ($1,310 - $600 tenant share), and the tenant would pay an additional $200 towards utilities, making the total payment $910. This leaves a reimbursement gap of $590 for the landlord.
In contrast, if the market rent for a two-bedroom is lower than the SAFMR, say $1,100, and the tenant's share is $600, the housing authority would cover the remaining $500, leaving a surplus of $210 for the landlord since the total reimbursement ($600 tenant share + $500 housing authority share) is less than the SAFMR cap of $1,310.
Given the SAFMR of $1,310, landlords in ZIP 99635 must carefully consider their rental pricing strategy to ensure they do not leave themselves with a significant reimbursement gap. Setting rents above the SAFMR can lead to financial losses unless the landlord absorbs the difference.
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.