Location: Yukon-Koyukuk Census Area, AK | Metro: Yukon-Koyukuk Census Area, AK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 99675 reveals a complex picture when considering the potential for Section 8 properties. The annualized Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $990. However, the median home value and market rent figures are not available, which complicates the calculation of the cap rate and gross yield.
To derive the cap rate, we need to compare the FMR with the median home value. Since the median home value is not available, we cannot provide a precise cap rate for the area. However, we can still discuss the implications of the FMR figure. Assuming an average two-bedroom home value, the $990 FMR would imply a certain gross yield. For example, if the median home value were hypothetically $200,000, the gross yield would be approximately 5.94%. This is calculated by taking the annual rental income ($990 * 12 months = $11,880) and dividing it by the property value ($200,000).
In contrast, without the market rent data, we cannot calculate the gross yield based on market rates. However, it's important to note that the absence of this data suggests either limited availability or a lack of comprehensive market studies for the area. Given the 58.3% renter density, it's reasonable to assume that there is a significant demand for rental properties, including those that cater to Section 8 tenants.
The Days on Market (DOM) figure is also not available, which means we cannot accurately assess how quickly properties are typically leased in this area. A higher DOM might indicate slower leasing times, which could affect cash flow and overall investment performance.
Given the limited data, the most concrete comparison we can make is between the implied gross yield based on the FMR and the unknown market rent scenario. If the hypothetical median home value of $200,000 were accurate, the FMR-based gross yield would be 5.94%. To determine which scenario is more realistic, landlords and investors should conduct further research into local market conditions and property values. The high renter density indicates a strong potential for rental occupancy, but the actual market rent would provide a clearer picture of the investment's profitability.
Investors should consider the FMR as a baseline for calculating potential returns, while acknowledging that actual market rents could vary significantly. Engaging with local real estate agents and reviewing recent sales data can help in estimating the median home value and market rent, thereby providing a more accurate cap rate and gross yield for ZIP 99675.
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.