Location: Prince of Wales-Hyder Census Area, AK | Metro: Prince of Wales-Hyder Census Area, AK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
U.S. Census Bureau data (2024)
A skeptical investor might ask if the Fair Market Rent (FMR) of $1,180 for the metro area in fiscal year 2026 will be sufficient to cover the mortgage on a home in ZIP 99927. Unfortunately, the median home value data is not available for this ZIP code, making it difficult to provide a precise answer. However, given that ZIP 99927 has an extremely high vacancy rate and most homes are either owned or have a mortgage, it suggests that the housing market is not highly active. This could mean lower mortgage rates due to reduced competition among buyers.
The second objection concerns the renter demand at 0.0%. According to the data from United States Zip Codes, ZIP 99927 has an unusually high percentage of vacancies. This indicates that the demand for rental properties is indeed low. Landlords must consider this when deciding whether to invest in this area, as finding tenants could prove challenging.
The third concern is whether vouchers will keep pace with market rents in ZIP 99927. While the data does not specify the exact relationship between voucher amounts and market rents, it is worth noting that the FMR is set at $1,180. If vouchers are below this amount, they may struggle to cover the cost of renting in this area. Investors should monitor local housing assistance programs to ensure that they can still attract tenants even if they rely on vouchers.
In summary, while the FMR may suggest that rents in ZIP 99927 are manageable, the lack of detailed median home value data makes it hard to assess mortgage coverage. The low renter demand and potential mismatch between voucher amounts and market rents present significant challenges for landlords and small-portfolio investors.
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.