Section 8 Fair Market Rent (FMR) for ZIP 99901 - 2027

Location: Prince of Wales-Hyder Census Area, AK | Metro: Ketchikan Gateway Borough, AK

Investment Score for ZIP 99901

Monthly Rent (2BR)

$1,730

Median Price (2BR)

$297,393

1% Rule

0.58%

Annual Yield

6.98%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,200
1 Bedroom	$1,320
2 Bedrooms	$1,730
3 Bedrooms	$2,400
4 Bedrooms	$2,890
5 Bedrooms	$3,352
6 Bedrooms	$3,754
7 Bedrooms	$4,054
8 Bedrooms	$4,257

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,320	$127,395	1.04%	B
2BR	$1,730	$297,393	0.58%	F
3BR	$2,400	$449,063	0.53%	F
4BR	$2,890	$531,595	0.54%	F
5BR	$3,352	$578,591	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

13,768

Median Household Income

$92,885

Housing Units

6,690

Renter Percentage

31.4%

Occupancy Rate

85.7%

Renter Occupied

1,799

The ZIP code 99901, located in Ketchikan, AK, is a unique market characterized by its coastal setting and relatively small population size. This environment influences both rental and homeownership dynamics, making it essential for real estate investors to understand the local economic conditions and housing trends.

Fair Market Rent (FMR): The FMR for the metro area in fiscal year 2026 is set at $1,630, indicating the government's benchmark for what is considered a reasonable rent for a two-bedroom apartment.
Market Rent: According to Census ACS data, the actual market rent stands at $1,505, suggesting that the rental market is slightly below the government's FMR, which could present opportunities for landlords looking to align their rents with federal guidelines.
Median Home Value: The median home value in the area is $393,100, reflecting a moderate price point for homeownership that is accessible to many residents given the local income levels.
Renter Share: With 31.4% of the population being renters, there is a significant demand for rental properties, though it's important to note that the majority still prefer owning homes.
Days on Market (DOM): Data on the average days a property remains on the market before selling is currently unavailable, but this metric would be crucial for assessing the speed of the real estate market in Ketchikan.
Median Income: The median household income is $92,885, providing insight into the financial capability of potential tenants and buyers in the area.

In summary, the real estate market in Ketchikan, AK, offers a balanced opportunity for both rental and home investment. Rental properties can aim to meet or slightly exceed the market rent of $1,505 while keeping an eye on the FMR of $1,630. The median home value of $393,100 aligns well with the median income, making homeownership a viable option for many. However, with 31.4% of the population renting, there remains a strong demand for rental units. Investors should consider these factors when deciding whether to focus on rental properties or home investments in this area.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.