Location: Fairbanks-College, AK | Metro: Fairbanks-College, AK MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,500 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $2,160 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,610 |
| 5 Bedrooms | $4,188 |
| 6 Bedrooms | $4,691 |
| 7 Bedrooms | $5,066 |
| 8 Bedrooms | $5,319 |
U.S. Census Bureau data (2024)
In ZIP 99702, the Section 8 program operates under specific economic guidelines that affect how much landlords can expect to receive from vouchers. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $2,330. This figure is crucial because it defines the maximum amount that the Housing Choice Voucher Program will pay toward rent in this specific area.
The local market rent for a two-bedroom unit, according to the Census ACS, is currently $2,089. This means that the SAFMR is higher than the average market rent, which could be beneficial for landlords who might otherwise struggle to find tenants willing to pay the full market price.
When a tenant uses a Section 8 voucher, they are responsible for paying approximately 30% of their adjusted monthly income toward rent. The voucher then covers the difference between the tenant's contribution and the SAFMR. For instance, if a tenant has an adjusted monthly income of $1,500, they would contribute around $450 towards rent. The voucher would cover the remaining amount up to the SAFMR of $2,330.
Additionally, the voucher includes utility allowances, which vary based on the size of the unit and the location. These allowances are meant to help cover the cost of utilities such as electricity, water, and gas. In ZIP 99702, the utility allowance for a two-bedroom unit is typically around $300.
To illustrate the economics, let’s assume the total rent is $2,330. If the tenant contributes $450, the voucher would cover the rest, which is $1,880. Adding the utility allowance of $300, the total reimbursement a landlord would receive is $2,180. This is slightly above the local market rent of $2,089, indicating a potential surplus for landlords who participate in the program.
The typical reimbursement gap or surplus in ZIP 99702 for a two-bedroom unit is therefore a surplus of about $91. This means that landlords who rent to Section 8 participants in this ZIP code can expect to receive a little more than the average market rent, making it a favorable option for those looking to ensure steady rental income without the risk of vacancy.
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.