Location: Northwest Arctic Borough, AK | Metro: Northwest Arctic Borough, AK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,400 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 99727 in the Northwest Arctic Borough, AK metro area reveals several key points that are crucial for landlords and small-portfolio investors.
First, does the rent math work? The Fair Market Rent (FMR) for the area is set at $1,700 for fiscal year 2026, which is significantly higher than the current market rent of $1,075 according to Census ACS data. This indicates that landlords may be overestimating their rental income potential if they rely solely on FMR figures. The actual market conditions suggest a lower rent threshold that could impact profitability.
Second, is acquisition affordable? Unfortunately, specific data points such as the median home value, days on market (DOM), and the percentage of homes with price cuts are not available for ZIP 99727. This lack of information makes it difficult to assess the affordability of property acquisition in this area. Investors should seek additional local data to make informed decisions about purchasing properties.
Third, is there tenant demand? The ZIP code has a total population of 533, with 19.1% of residents being renters. This translates to approximately 102 renters in the area. While the number of renters is relatively low, it suggests a stable but limited demand for rental housing. Landlords must consider the size of the rental market when deciding whether to enter or expand in this area.
Verdict: The rent math in ZIP 99727 does not align favorably with the current market conditions, as the FMR is substantially higher than what tenants are currently paying. Acquisition costs cannot be assessed due to unavailable data, which poses a risk for investment. Tenant demand exists but is constrained by the small population size. For landlords and small-portfolio investors, the decision to invest should be made cautiously, considering the limited rental market and the discrepancy between expected and actual rental incomes.
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.