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 | $940 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,720 | $270,352 | 0.64% | D |
U.S. Census Bureau data (2024)
The market in ZIP code 99639 presents a dynamic equilibrium between supply and demand, with specific indicators pointing towards a scenario where demand is robust but supply remains sufficient to meet it without significant strain. The Fair Market Rent (FMR) for the area stands at $1,130, as projected for fiscal year 2026, while the actual market rent, based on recent Census American Community Survey (ACS) data, is slightly lower at $1,007. This suggests that the current rental market is relatively stable and closely aligned with the expected future values, indicating neither a severe shortage nor an overabundance of rental properties.
The median home value of $206,095 reflects a residential market that is accessible to a broad range of buyers, which can help maintain a steady flow of both renters and owners into the area. However, the absence of data on the percentage of price-cut share and days on market (DOM) makes it challenging to pinpoint whether landlords are frequently lowering rents to attract tenants or if homes are selling quickly, respectively.
A notable feature of this market is the 14.7% share of renters. This figure implies a smaller proportion of the population is renting compared to owning, which could suggest that the area has a strong inclination towards homeownership. Despite this, the relatively high FMR and market rent figures indicate that there is still a significant amount of rental activity. This combination points to a potential long-term housing pressure, as the demand for rentals might persist even in a predominantly owner-occupied environment. Landlords and small-portfolio investors should be aware of the balance between these two segments of the market and how they might influence each other.
In summary, ZIP 99639 is characterized by a stable rental market with a slight upward trend in expected future rents, a median home value that supports a mix of renters and owners, and a rental share that hints at ongoing demand despite a preference for homeownership. These factors collectively suggest a market in motion, where the dynamics between supply and demand are finely balanced, creating opportunities for both types of investment but requiring close attention to local trends and conditions.
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.