2 Alaska cities ranked by estimated cap rate. The average cap rate across Alaska markets is 4.1%, with median home prices averaging $353K and rents averaging $1,790/mo. Fairbanks leads with a 5.4% cap rate at a $295K median price. Property taxes average 1.04% across Alaska markets.
Alaska offers 2 investable rental markets tracked by CapRateCity. The state average cap rate of 4.1% is above the 3.81% national average, making Alaska an attractive state for cash flow investors. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Alaska home prices average $353K, which is 6% above the national average of $333K. Rents average $1,790/mo.
Taxes and costs: Property taxes average 1.04% across Alaska, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $141 per year to NOI on an average-priced property. Fairbanks has the lowest rate at 1.04%.Vacancy averages 5.8%, in line with national norms.
Growth outlook: Population growth across Alaska averages 0.10% per year, led by Fairbanks at 0.1%. Home values are appreciating at 1.5% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Alaska offers moderate opportunities for rental investors. The best deals are in cities at the top of the ranking — use the calculators on each city page to model specific properties.