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 economics of Section 8 housing in ZIP code 99786 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1,930 per month for fiscal year 2026. This figure is crucial because it determines the maximum amount that the federal government will reimburse landlords under the Housing Choice Voucher program.
A landlord participating in Section 8 should understand that the total rent is split between the tenant and the government. Typically, the tenant contributes 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 for a tenant in this area, their contribution would be approximately $450 per month. This amount is subject to change based on the individual tenant's income.
In addition to the tenant's portion, the government also provides a utility allowance. For ZIP 99786, let's consider an average utility allowance of $200 per month. This brings the total reimbursement close to the SAFMR cap of $1,930.
To calculate the actual reimbursement, add the tenant's contribution of $450 to the utility allowance of $200. Therefore, the government will cover the remaining $1,280 to meet the $1,930 SAFMR limit. This results in a total reimbursement of $1,930 for a two-bedroom unit.
If the local market rent were available, you could compare it to the SAFMR to determine if there is a surplus or a gap. However, since the local market rent is currently N/A, it's important to note that the SAFMR serves as the benchmark for rental rates in the Section 8 program. Landlords must ensure that their rents do not exceed this amount to remain eligible for full reimbursement.
In summary, for a two-bedroom apartment in ZIP 99786, the government will pay up to $1,930 per month. With a tenant contributing around $450 and a utility allowance of $200, the typical reimbursement gap or surplus cannot be determined without knowing the local market rent. But based on the SAFMR alone, landlords can expect a stable and predictable source of income from Section 8 tenants.
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.