Location: Fairbanks-College, AK | Metro: Fairbanks-College, AK MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,150 | $150,231 | 0.77% | D |
| 2BR | $1,510 | $257,720 | 0.59% | F |
| 3BR | $2,100 | $371,859 | 0.56% | F |
| 4BR | $2,540 | $456,638 | 0.56% | F |
U.S. Census Bureau data (2024)
The ZIP code 99709 in Fairbanks, AK, presents a unique opportunity for landlords and small-portfolio investors. On the yield axis, the Federal Market Rent (FMR) for 2024 is set at $1,490. This is notably lower than the market rent of $1,767, indicating that there is potential for higher rental income above the FMR. However, when considering the median home value of $310,813, it becomes evident that the yield in this market is moderate compared to other areas with higher rental rates relative to property values.
Moving to the stability axis, the rental market shows some resilience but also has its challenges. The percentage of renters is relatively high at 35.2%, which suggests a decent demand for rental properties. The Days on Market (DOM) average of 21 days indicates a reasonably quick turnover rate for rentals, suggesting that properties are likely to be occupied promptly once they become available. Additionally, the median household income of $86,294 supports the ability of residents to pay market rents, contributing to a stable cash flow for landlords.
Based on these figures, ZIP 99709 is best classified as a steady-cashflow zone. While it does not offer the highest yields due to the relatively low differential between FMR and market rents, the high percentage of renters and short DOM suggest a robust demand for rental housing. The income level further underpins the ability of tenants to meet their rental obligations, ensuring a consistent and reliable cash flow for investors.
To summarize, the combination of a moderate rental yield and strong market stability makes ZIP 99709 an attractive option for those seeking a balanced investment strategy in the real estate market. It is neither a high-yield/low-stability flip-style market nor a low-yield/high-stability zone but rather a middle ground that offers both reasonable returns and predictable occupancy.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.