Location: Yukon-Koyukuk Census Area, AK | Metro: Yukon-Koyukuk Census Area, AK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
U.S. Census Bureau data (2024)
The Section 8 housing thesis in ZIP 99720 (Allakaket, AK) is anchored by the disparity between the Fair Market Rent (FMR) of $1,130 for fiscal year 2026 and the local median rent, which is currently not available. However, given the median home value of $54,000 and the median income of $31,875, it's evident that the FMR is significantly higher than the typical market rent.
This gap, estimated at $1,130, represents a significant opportunity for landlords and small-portfolio investors. With 51.9% of residents being renters, the demand for affordable housing is substantial. The high FMR compared to the median income indicates that voucher tenants can afford rents that are above the local market rate, making this area a strong yield play.
The high FMR relative to the median income also suggests that landlords may need to adjust their expectations regarding rent increases. While the market rent is not available, the median home value of $54,000 and the median income of $31,875 provide context for the affordability of housing in the area. Given these figures, the FMR exceeds the median rent by a considerable margin, potentially leading to higher occupancy rates and stable cash flows for investors.
Investors should note that the median income of $31,875 places ZIP 99720 in the 26th percentile statewide, indicating lower economic conditions compared to the rest of Alaska. The poverty rate of 54.3%, well above the national average of 13.1%, further highlights the importance of the Section 8 program in providing affordable housing options. Despite these challenges, the high FMR makes it feasible for landlords to charge rents that reflect the federal guidelines, thereby maximizing returns.
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.