Location: Fairbanks-College, AK | Metro: Fairbanks-College, AK MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 99714 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1830 per month for fiscal year 2024. This figure represents the maximum amount the Housing Choice Voucher program will pay towards the rent of a two-bedroom unit in this area.
To understand how much a landlord can expect to receive from a voucher, it's important to break down the components. Tenants are typically required to pay 30% of their adjusted income toward rent. If a tenant's adjusted income is $1600 per month, they would contribute $480 towards the rent. The remainder, up to the SAFMR limit, is covered by the voucher. In this case, the voucher would cover $1350 ($1830 - $480).
Utility allowances must also be considered. These vary but are generally capped at a certain amount per bedroom. For a two-bedroom apartment, the utility allowance might be around $300, though this can differ based on local conditions and the type of utilities included. This allowance is paid directly to the tenant and is not part of the rent reimbursement.
Therefore, when a tenant has an adjusted income of $1600, the total payment a landlord receives from the voucher program for a two-bedroom unit is $1350. The utility allowance of $300 goes to the tenant, not the landlord. It's crucial to note that if the market rent for a two-bedroom apartment exceeds $1830, the landlord will not receive the excess amount from the voucher program. Landlords must ensure that their rental rates do not exceed the SAFMR to fully benefit from the voucher program.
In ZIP 99714, since the local market rent is currently not available, we'll focus on the SAFMR. Given the SAFMR of $1830 and the tenant contribution of $480, the reimbursement gap for a landlord renting a two-bedroom unit at the SAFMR rate is $450 per month. This gap is the difference between the market rent and the total amount received from both the voucher and the tenant. However, if the market rent were lower than $1830, the landlord would receive the full market rent plus any additional amount from the tenant to meet the 30% requirement, potentially resulting in a surplus.
To summarize, landlords in ZIP 99714 should expect a reimbursement of up to $1830 for a two-bedroom unit under the Section 8 program, with the actual amount depending on the tenant's income. The reimbursement gap for a two-bedroom unit rented at the SAFMR rate is $450 per month, assuming a tenant income of $1600.
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.