Location: Matanuska-Susitna Borough, AK | Metro: Matanuska-Susitna Borough, AK HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 99676 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1380 per month for fiscal year 2024. This SAFMR is specific to this ZIP code, reflecting the unique rental conditions within 99676.
In contrast, the local market rent for a two-bedroom unit is reported at $975 according to the Census ACS (American Community Survey). This discrepancy highlights the value of participating in the Section 8 program for landlords, as the reimbursement rates are higher than the average market rent.
A voucher payment under Section 8 is calculated based on the tenant's portion of the rent plus any utility allowances. Typically, the tenant contributes 30% of their adjusted income towards the rent. If we assume an average adjusted income of $1500 for a tenant, they would contribute $450 towards the rent ($1500 x 0.3).
The remaining amount is covered by the Section 8 voucher. For a two-bedroom apartment in ZIP 99676, this would mean the voucher pays up to $1380 minus the tenant's contribution of $450, leaving a potential reimbursement of $930. Utility allowances can vary but generally add an additional $200-$300 to the reimbursement, depending on the actual costs incurred by the tenant.
To illustrate, if the utility allowance is $250, the total reimbursement to the landlord would be $930 for rent plus $250 for utilities, totaling $1180. This is still above the local market rent of $975, indicating a surplus for landlords who participate in the program.
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 99676 is therefore a surplus of approximately $205 per month ($1180 - $975), assuming the utility allowance is $250. This surplus can help offset the administrative costs associated with managing Section 8 properties and provides a buffer against potential rent arrears.
Landlords should also note that the SAFMR is subject to change annually based on HUD’s (Department of Housing and Urban Development) assessment of the local housing market. However, for the current fiscal year, the economics favor participation in the Section 8 program for property owners in ZIP 99676.
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.