Location: Aleutians West Census Area, AK | Metro: Aleutians West Census Area, AK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,800 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,490 |
| 3 Bedrooms | $2,970 |
| 4 Bedrooms | $3,270 |
| 5 Bedrooms | $3,793 |
| 6 Bedrooms | $4,248 |
| 7 Bedrooms | $4,588 |
| 8 Bedrooms | $4,817 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 99685 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $2,290, while the Census ACS reports the market rent at $2,066. This means that the FMR is $224 higher than the market rent, or approximately 10.8% above it. Given this situation where FMR exceeds market rent, landlords can leverage the guaranteed income from voucher tenants to maximize their yields.
The primary advantage for landlords in this scenario is the assurance of rental payments through the Section 8 program. With 65.9% of residents being renters and a median household income of $135,759, there is a strong demand for affordable housing options. Voucher tenants provide a stable source of income, which is particularly beneficial when the FMR is higher than the prevailing market rent. Landlords can secure rental incomes that are closer to the FMR without the risk of vacancy that might occur if they priced their units at market rates.
This ZIP code's characteristics make it an attractive location for landlords interested in maximizing returns. The high percentage of renters indicates a robust market for rental properties, and the median income suggests that tenants are likely to be able to afford their share of the rent. Moreover, the Section 8 program ensures that the government will cover the difference between the market rent and the tenant's portion, making it a reliable investment strategy.
In summary, the gap between the FMR and market rent in ZIP 99685 presents an opportunity for landlords to increase their yields by renting to voucher tenants. This strategy benefits from the high demand for rentals and the financial stability provided by the Section 8 program.
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.