Location: Yukon-Koyukuk Census Area, AK | Metro: Fairbanks-College, AK MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
The economics of Section 8 in ZIP code 99790 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1650 per month for fiscal year 2024. This figure represents the maximum amount that the housing authority will pay towards the rent of a two-bedroom unit in this area.
Local market rents for a comparable two-bedroom unit are currently unavailable, which can make it challenging to compare the SAFMR against what you might typically charge. However, the SAFMR serves as a benchmark for determining the rental subsidy amount.
A landlord participating in the Section 8 program should understand that the voucher payment consists of two parts: the tenant's contribution and the housing authority's subsidy. The tenant must pay 30% of their adjusted income towards the rent. If we assume an average adjusted income of $1833.33 (the 30% would be $550), then the housing authority would cover the remaining $1100 to reach the $1650 SAFMR limit.
Utility allowances are also factored into the total cost but do not directly affect the voucher reimbursement rate for the rent itself. These allowances vary based on the number of bedrooms and are intended to help cover the tenant's utility expenses. For a two-bedroom apartment, the utility allowance is typically around $200-$300 per month, depending on the region's climate and energy costs.
In ZIP 99790, landlords can expect the typical reimbursement gap or surplus when comparing the SAFMR to the actual market rent. Given the SAFMR of $1650, if the market rent for a two-bedroom unit exceeds this amount, the landlord will face a reimbursement gap. Conversely, if the market rent is lower, there would be a surplus. Since the local market rent data is not available, landlords should use the SAFMR as a guideline for setting their rental rates.
To summarize, in ZIP 99790, the SAFMR for a two-bedroom apartment is $1650. Landlords receive a subsidy that covers the difference between the tenant's 30% contribution and the SAFMR. The exact reimbursement gap or surplus depends on the actual market rent, which needs to be determined independently.
Data Sources: FMR data from HUD (2027).
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.