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 economics of Section 8 in ZIP code 99653 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,050. This means that landlords who participate in the Section 8 program can charge up to this amount for a 2BR unit. However, it's important to note that the local market rent for a similar unit is lower, running at $850 according to the latest Census ACS data.
A Section 8 voucher works by covering the difference between the tenant's portion of the rent and the total rent due. For ZIP 99653, the tenant's portion is typically 30% of their income. If we assume an average income level for a tenant, their contribution might be around $255, which is 30% of $850. The voucher would then cover the remaining portion up to the SAFMR of $1,050. In addition to the rent, there are utility allowances. These vary but can range from $100 to $200 per month depending on the specifics of the housing situation and local standards.
To illustrate, let's say a tenant's portion is $255 and the utility allowance is $150. The voucher would pay the remainder, calculated as follows:
This results in a reimbursement gap where the landlord receives less than the full SAFMR. Specifically, in this scenario, the landlord would receive $795 plus the $150 utility allowance, totaling $945. This is $105 less than the local market rent of $850, creating a shortfall of $105 per month before considering the utility allowance.
In conclusion, landlords in ZIP 99653 participating in the Section 8 program will likely see a reimbursement gap when renting a two-bedroom unit. The typical gap, after accounting for the tenant's contribution and utility allowances, is a surplus of $95 for landlords, assuming the local market rent holds steady at $850. This surplus is the difference between the actual market rent and the reimbursement received from the voucher plus utilities, making the economics of Section 8 somewhat favorable in this specific ZIP code.
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.