Location: Nome Census Area, AK | Metro: Nome Census Area, AK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,330 for ZIP 99742 will sufficiently cover the mortgage on a property. The data does not provide specific home values for this ZIP code, making it challenging to determine if the FMR is adequate. However, given the low population density and remote location of Gambell, Alaska, it's likely that property values are relatively low, which could mean that a mortgage payment would be manageable with the FMR.
The investor may also doubt the level of renter demand at 12.8%. This percentage indicates that approximately 13 out of every 100 housing units are rented. While this figure is lower compared to urban areas, it reflects the reality of rural and remote locations. In such settings, rental demand tends to be lower due to fewer transient residents and limited job opportunities attracting newcomers. Despite this, the demand exists and can be met with properties priced appropriately for the area.
A final concern could be whether voucher programs will keep pace with the market rent of $825. The FMR of $1,330 suggests that the voucher amount is below the market rate. However, it's important to note that voucher programs aim to provide affordable housing options, and they often adjust their payments based on the local cost of living. In ZIP 99742, the voucher amount might be sufficient for many properties, especially considering the lower overall cost of living in rural Alaska.
In conclusion, while the data presents challenges regarding mortgage coverage, renter demand, and voucher adequacy, it also highlights the unique aspects of ZIP 99742. Investors should consider these factors carefully and potentially seek additional information on local property values and the specifics of voucher programs in the area.
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.