Section 8 Fair Market Rent (FMR) for ZIP 99654 - 2027

Investment Score for ZIP 99654

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	$920
1 Bedroom	$960
2 Bedrooms	$1,260
3 Bedrooms	$1,740
4 Bedrooms	$2,110
5 Bedrooms	$2,448
6 Bedrooms	$2,742
7 Bedrooms	$2,961
8 Bedrooms	$3,109

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	$1,260	$299,371	0.42%	F
3BR	$1,740	$414,190	0.42%	F
4BR	$2,110	$527,313	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 99654 (Wasilla, AK) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Wasilla, AK (ZIP 99654), in 2026 is set at $1350 for a two-bedroom unit. This represents approximately 16.6% of the median household income in the area, which is $97,544. However, the actual rental market price for a two-bedroom unit, according to Zillow, is $292,011. This translates into a price-to-FMR ratio of 18.0x, indicating that the actual market rent is significantly higher than the FMR. For Section 8 voucher holders, this means that they face substantial constraints when trying to find housing that fits within their budget. The voucher amount of $1350 is far below what landlords typically charge in the local market, making it difficult for voucher recipients to secure a two-bedroom unit without additional financial assistance. #### Affordability & Renter Profile The renter population in Wasilla constitutes 28.9% of the total population of 44,647, which equates to about 12,883 renters. Given the occupancy rate of 92.3%, the rental market appears to be relatively tight, with limited availability of units. This tightness can drive up rental prices, further exacerbating the affordability issue for low-income households. The median household income of $97,544 suggests that the typical resident in Wasilla has a higher income level compared to many other areas in the United States. However, the high cost of living, particularly in terms of housing, means that even middle-income earners might struggle to afford homes without significant financial strain. For those relying on Section 8 vouchers, the disparity between FMR and actual market rents makes finding affordable housing a significant challenge. #### Investor Angle From an investor perspective, the ZIP code 99654 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1350, but the actual market rent is $292,011, which is nearly 18 times higher. This indicates that the rental market is highly inflated relative to the FMR, and investors who rely solely on FMR to cover costs will likely face negative cash flow. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the average rental income against the typical operating expenses. If an investor were to rent out a two-bedroom unit at the FMR of $1350, they would need to ensure that their expenses (including mortgage payments, property taxes, insurance, maintenance, and utilities) do not exceed this amount. Given the high market rent, it is unlikely that properties can be acquired at a price that would allow for positive cash flow at the FMR. The investment grade for this ZIP code would be considered low due to the significant gap between FMR and market rents. Investors looking to focus on Section 8 vouchers would need to carefully evaluate the potential for long-term occupancy and the likelihood of receiving sufficient rental income to cover expenses. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should consider targeting smaller units such as one-bedroom apartments, where the FMR is $1030. While still challenging, these units might have a better chance of attracting tenants who can afford the rent without additional subsidies. Additionally, the lower rent could potentially align more closely with the actual market conditions, reducing the risk of negative cash flow. 2. **Seek Government Assistance Programs**: Given the high cost of living and the tight rental market, investors might benefit from exploring government assistance programs beyond just Section 8 vouchers. These could include Low-Income Housing Tax Credits (LIHTC) or other federal and state incentives designed to encourage the development of affordable housing. 3. **Consider Mixed-Income Developments**: Developing mixed-income properties could be a viable strategy. By offering a mix of units at different price points, investors can cater to a broader range of tenants, including those who might not qualify for Section 8 vouchers but still require affordable housing options. This approach can help balance the financial risks associated with relying solely on FMR-based rents. #### Bottom Line For Section 8-focused investors, the ZIP code 99654 (Wasilla, AK) is a challenging market due to the significant gap between FMR and actual market rents. The recommendation would be to **skip** this market unless investors can find ways to reduce costs or secure additional subsidies. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow based solely on FMR, and the overall investment grade is low. Investors might want to explore other markets with a more favorable alignment between FMR and actual rental prices.

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.