Updated 2026 · Based on median market data for Fairbanks, AK
The median monthly rent in Fairbanks, AK is $1,900, translating to $22,800 in annual gross rental income per unit. The rent-to-price ratio is 0.64% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Fairbanks spend approximately 30% 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 vacancy rate in Fairbanks 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. Population growth of 0.1% annually provides stable demand.
Fairbanks's GRM (price divided by annual rent) is 12.9x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,900/mo, a single-family rental in Fairbanks generates approximately $22,800 in gross annual income. After accounting for 5.8% vacancy ($1,322 lost), property taxes of $3,068, insurance (~$1,180), and maintenance (~$1,180), the estimated NOI is $16,050 per year, or $1,337/mo.
Fairbanks vs Alaska state average and national average across key investment metrics. Fairbanks outperforms both benchmarks on cap rate.