Updated 2026 · Based on median market data for Anchorage, AK
The median monthly rent in Anchorage, AK is $1,680, translating to $20,160 in annual gross rental income per unit. The rent-to-price ratio is 0.41% — well below the 1% rule, making pure cash flow investing challenging at median prices and requiring investors to target below-median purchases or value-add strategies. For context, a 0.41% rent-to-price ratio means that for every $100,000 invested in property, you collect approximately $410/mo in gross rent. The gross rent multiplier of 20.3x means it takes 20.3 years of gross rent to equal the purchase price — a high ratio that reflects price appreciation outpacing rent growth.
Renters in Anchorage spend approximately 26% of the local median household income ($76,800) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units. The 30% affordability ceiling suggests maximum supportable rent of approximately $1,920/mo — that is $240/mo above current median rent.
The vacancy rate in Anchorage is 5.8%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Budget for one month of vacancy per year in your underwriting to be conservative. Population growth of 0.1% annually provides stable demand.
Anchorage's GRM (price divided by annual rent) is 20.3x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow, which adds risk if the appreciation thesis does not materialize. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x. To beat Anchorage's median GRM, target properties where you can achieve rents above $1,680 through renovations, better marketing, or targeting underserved tenant segments — or buy at a discount to the $410,000 median price. Every point lower on GRM translates to roughly 0.5-0.8% improvement in your cap rate.
At the median rent of $1,680/mo, a single-family rental in Anchorage generates approximately $20,160 in gross annual income. After accounting for 5.8% vacancy ($1,169 lost), property taxes of $4,264, insurance (~$1,640), and maintenance (~$1,640), the estimated NOI is $11,447 per year, or $954/mo. Adding an 8% management fee ($1,613/yr) reduces investor cash flow further. Before debt service, you are looking at approximately $9,834/yr in landlord net income. Whether this is attractive depends on your total capital invested — at a $82,000 down payment, the unlevered yield on equity from NOI alone is 14.0%.
Rent growth in Anchorage is driven by the interplay of population growth (0.1%), income growth, and housing supply constraints. With 0.1% population growth, organic rent growth will be slower — roughly 1.5% annually, taking rents from $1,680 to $1,810 over 5 years. The affordability headroom of $240/mo between current rents and the 30% income threshold provides substantial room for rent increases without pushing tenants into financial stress.
The high local income of $76,800 combined with elevated home prices ($410,000 median) creates a tenant base of working professionals — often young professionals, dual-income couples, and corporate relocations who choose to rent for flexibility. These tenants typically have strong credit, stable employment, and expect well-maintained properties with modern finishes. They are less price-sensitive but more demanding on property condition and responsiveness. The larger population base of 291,247 gives you a deeper tenant pool to draw from, reducing re-leasing time.
As a mid-sized market, Anchorage has property management options but less competition among PMs. Expect fees of 8-12% of collected rent. At $1,680/mo, budget $168/mo for management. Self-management makes sense if you are local, have fewer than 5 units, and the rent level justifies your time — at $1,680/mo per unit, the income per unit is high enough that professional management is clearly affordable and preserves your time for deal sourcing.
Anchorage vs Alaska state average and national average across key investment metrics. Anchorage's cap rate is below both benchmarks — deal sourcing is critical here.