Factor in financing to see your actual return on invested capital in Fairbanks.
$
$73,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-4.95%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$82,600
$73,750 down + $8,850 closing
Monthly Mortgage
$1,442
on $221K loan
Monthly Cash Flow
$-340
after all expenses
Annual Cash Flow
$-4,085
before taxes
Cash Flow Breakdown
Monthly Rent$1,900
Less Expenses−$798
Less Mortgage−$1,442
Monthly Cash Flow$-340
Is Fairbanks a Good Place to Invest in Rental Property?
Fairbanks, AK has a population of 50,000 and has been growing at 0.1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $295,000 paired with median rents of $1,900/mo produces an estimated cap rate of 5.44%.
Property taxes at 1.04% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.8x, homes cost about 3.8 times the local median income of $76,800. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 1.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Fairbanks presents moderate opportunities. Cap rates near 5.44% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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