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 | $1,250 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,280 | $408,964 | 0.56% | F |
| 4BR | $2,760 | $555,515 | 0.5% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,560 for ZIP 99664 in fiscal year 2026 will be sufficient to cover the mortgage on a property valued at $380,694. According to the data, the FMR does provide a reasonable buffer above typical market rents, which stand at $1,205. This suggests that even if market rents do not reach the FMR, the income should still exceed the average rent, helping to cover mortgage payments and maintenance costs.
The second objection concerns the level of renter demand in the area, given that only 36.1% of households are renters. While this percentage might seem low, it's important to consider the total number of households. A higher proportion of owner-occupied homes can indicate stability and a desirable location, potentially leading to a steady stream of rental applications from those seeking temporary housing or who prefer not to own property. The data does not provide a breakdown of the types of renters or the vacancy rate, which could offer further insight into the actual demand for rentals.
A third concern is whether voucher holders will be able to keep up with the rising market rents, especially when the FMR is set at $1,560 but market rents are currently at $1,205. The data shows that the FMR is designed to accommodate a significant portion of the renter population, including those receiving housing assistance. However, the data does not specify the exact amount of vouchers available or their average value. It is critical to monitor local housing authority announcements and trends in voucher utilization to ensure that the gap between FMR and market rents remains manageable.
In conclusion, while the data provides a strong foundation for addressing these concerns, it's essential to acknowledge that certain aspects, such as the precise number of vouchers and their values, require additional research. Nonetheless, the FMR of $1,560 offers a safeguard against financial strain for landlords participating in the Section 8 program in ZIP 99664.
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.