Section 8 Fair Market Rent (FMR) for ZIP 99645 - 2027

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

Investment Score for ZIP 99645

Monthly Rent (2BR)

$1,400

Median Price (2BR)

$337,198

1% Rule

0.42%

Annual Yield

4.98%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,070
2 Bedrooms	$1,400
3 Bedrooms	$1,940
4 Bedrooms	$2,340
5 Bedrooms	$2,714
6 Bedrooms	$3,040
7 Bedrooms	$3,283
8 Bedrooms	$3,447

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,400	$337,198	0.42%	F
3BR	$1,940	$423,927	0.46%	F
4BR	$2,340	$531,208	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

32,103

Median Household Income

$100,455

Housing Units

12,015

Renter Percentage

19.8%

Occupancy Rate

92.4%

Renter Occupied

2,199

The area of Palmer, AK, represented by ZIP code 99645, is a key region for real estate investment, particularly for those interested in the rental market dynamics influenced by the Section 8 program. This analysis provides insights into the financial realities of the market, drawing from specific data points to offer a clear picture of what investors can expect.

The Fair Market Rent (FMR) for ZIP 99645 is set at $1,250 for the fiscal year 2024, indicating the government's benchmark for affordable housing in the area.
The actual market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,763, reflecting the higher rents that tenants are willing to pay compared to the FMR.
The median home value in Palmer is $434,805, suggesting a relatively stable and valuable real estate market.
Renters make up 19.8% of the population, a figure that highlights the significant portion of the community relying on rental properties.
The days on market (DOM) for rental listings average at 9 days, demonstrating a brisk demand for rental units in the area.
The median household income is $100,455, providing a strong economic foundation for the rental market and supporting higher rental prices.

Investors looking to capitalize on the rental market in Palmer, AK, should consider the gap between the Fair Market Rent and the actual market rent, which presents opportunities for landlords who can meet the needs of both government-subsidized and market-rate renters. The high median income supports robust rental prices, while the brisk DOM indicates strong tenant demand. The relatively low renter share suggests potential for growth in the rental sector, making Palmer an attractive investment destination for those focused on long-term real estate strategies.

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.