Location: Lake and Peninsula Borough, AK | Metro: Lake and Peninsula Borough, AK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 99648 is set at $1,030 for fiscal year 2026. This figure raises concerns about covering the mortgage on a typical home in the area. However, due to the lack of specific home price data, it's challenging to provide a definitive answer. The scarcity of homes for sale in ZIP 99648, as indicated by both Zillow and Trulia searches, suggests a limited supply, which could drive up property values and make it difficult to secure a property that aligns with the FMR.
A skeptical investor might question whether there is sufficient rental demand at 50.0%. While this percentage is lower than many urban areas, it's important to note that ZIP 99648 is located in Perryville, Alaska, a region with unique economic conditions. The local real estate market shows a significant number of vacant properties, indicating that there may be opportunities to attract tenants through competitive pricing or amenities. However, the exact number of renters and their willingness to pay the FMR of $1,030 remains uncertain without further data.
The voucher system is another point of contention. With market rents averaging $975, vouchers must keep pace to ensure affordability for low-income tenants. Yet, the data does not provide specifics on the value of vouchers or how they adjust annually. In regions with high vacancy rates, landlords might face challenges in fully utilizing voucher programs, especially if the voucher amounts fall below the $975 market rent. This could lead to situations where landlords must either accept lower rents or risk leaving units unoccupied.
To summarize, while the FMR of $1,030 and market rents of $975 offer a starting point for investment considerations, the limited availability of homes and specific economic dynamics of Perryville, AK, introduce uncertainties. Investors should carefully evaluate these factors and seek additional data on local housing costs and tenant demographics before making decisions.
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.