Location: Dillingham Census Area, AK | Metro: Dillingham Census Area, AK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 99678 reveals several key points regarding potential investment yields.
Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $1,120 per month for fiscal year 2026, the annualized rental income would be $13,440. If we assume a median home value that could accommodate such an apartment, the implied gross yield can be calculated. However, since the median home value is not available, we cannot provide a precise gross yield percentage for this scenario. But it's important to note that the annual income is higher when using the FMR.
In contrast, the Census ACS reported market rent for a similar unit at $873 per month. This translates to an annualized rental income of $10,476. Again, without a median home value, we cannot calculate a specific gross yield, but the annual income is lower compared to the FMR.
Given the 42.3% renter density in ZIP 99678, it suggests a moderate demand for rental properties. The N/A-day DOM (Days on Market) indicates incomplete data, which could imply either very quick sales or longer periods, affecting how fast a property can be leased out under the Section 8 program. However, with the current data, we lean towards the market rent figure being more realistic for gross-yield comparisons, as it reflects the actual rental rates observed in the area.
The disparity between the FMR and market rent underscores the importance of understanding local rental dynamics. While the FMR provides a benchmark, the actual market conditions, as evidenced by the Census ACS data, should guide investment decisions.
To summarize, the annualized rental income from a 2BR apartment under the Section 8 program based on FMR is $13,440, whereas the market rent stands at $10,476. Given the lack of median home value and the incomplete DOM data, the market rent scenario is more likely to represent the realistic gross-yield for investors considering properties in ZIP 99678.
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.