Fairbanks is home to the best residential real estate investment market in Alaska.
The 99712 zip code in Fairbanks presents the greatest opportunity for the best real estate investments among the 1,092 individual real estate markets in Alaska we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
💰 Looking to invest in real estate? Find a top local realtor with experience helping real estate investors find great deals.
Clever has earned home buyers’ and home sellers' trust with more than 3,800 5-star customer ratings on Trustpilot.
Our team is committed to making home selling more transparent by educating sellers through guides like this one. Our writers, editors, and industry-leading researchers strive to provide its readers with the most up-to-date, accurate, and useful information.
Our research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more publications.
Data sources
Most of the data in this article comes from the Zillow Home Value Index and the U.S. Census American Community Survey.
We update our data when the original sources update their data, usually monthly. Sometimes we'll update data more frequently.
Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.
About Clever Real Estate
Clever Real Estate has matched more than 200,000 buyers and sellers with agents.
We partner with over 18,000 top-performing agents nationwide at national brokers including Keller Williams, RE/MAX, Century 21, and more. Our free agent-matching tool connects sellers with agents who have agreed to work for a 1.5% commission rate, while Clever Offers lets sellers compare cash offers on their home at no charge.
5 best places to invest in Alaska
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Fairbanks | 100 | 2.6 | 2.4% |
| 2 | Anchorage | 82.2 | 3.5 | 23% |
| 3 | Kenai | 77.2 | 3.9 | 16% |
| 4 | Meadow Lakes | 73.3 | 4.0 | 27% |
| 5 | Palmer | 72.2 | 4.2 | 33% |
🚨 This article is for informational purposes only. It isn't intended to convey financial or legal advice. We recommend you talk to a real estate agent or real estate attorney when buying a home in Alaska.
1. Fairbanks
We've identified the 99712 zip code in Fairbanks as Alaska's best real estate investment market. Here's why.
🔎 Key data about Fairbanks (99712)
| Data point | Value | Rank in state (of 1,092 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $297,514[1] | 3rd lowest |
| Five-year appreciation | 2.4%[2] | 25th highest |
| Household income | $112,808[3] | 6th highest |
| Affordability ratio | 2.6 | most affordable |
| Five-year population growth | 3.4%[4] | highest |
| Unemployment rate | 4.4%[5] | 3rd lowest |
| Property taxes | $3,574[6] | 7th lowest |
| Educational attainment | 37%[7] | 12th highest |
Fairbanks (zip code 99712) is the best residential real estate investment market in Alaska. It has the 25th highest property value appreciation among markets we evaluated, with a 2.4% appreciation of the typical property over the last five years.
Fairbanks is the most affordable market among the 1,092 Alaska markets we evaluated, with an affordability ratio of 2.6.
2. Anchorage
The 99518 zip code in Anchorage is the runner-up spot for the best real estate investments in Alaska.
🔎 Key data about Anchorage (99518)
| Data point | Value | Rank in state (of 1,092 markets) |
|---|---|---|
| InvestScore | 82.2 | 2nd highest |
| Typical property value | $325,750[1] | 7th lowest |
| Five-year appreciation | 23%[2] | 6th highest |
| Household income | $93,995[3] | 14th highest |
| Affordability ratio | 3.5 | 7th most affordable |
| Five-year population growth | -0.7%[4] | 19th highest |
| Unemployment rate | 4.3%[5] | 2nd lowest |
| Property taxes | $4,348[6] | 17th lowest |
| Educational attainment | 31%[7] | 16th highest |
The 99518 zip code in Anchorage features a typical property value of $325,750, the 7th lowest in the state.
Property values have appreciated 23% over the past five years, the 6th highest increase among evaluated markets in the state. Anchorage homes have an affordability ratio of 3.5, the 7th most affordable in the state.
3. Kenai
The 99611 zip code in Kenai comes in at No. 3 in our ranking of the best residential real estate investment markets in Alaska.
🔎 Key data about Kenai (99611)
| Data point | Value | Rank in state (of 1,092 markets) |
|---|---|---|
| InvestScore | 77.2 | 3rd highest |
| Typical property value | $307,905[1] | 4th lowest |
| Five-year appreciation | 16%[2] | 19th highest |
| Household income | $79,757[3] | 21st highest |
| Affordability ratio | 3.9 | 12th most affordable |
| Five-year population growth | 3%[4] | 2nd highest |
| Unemployment rate | 2.9%[5] | lowest |
| Property taxes | $1,936[6] | 2nd lowest |
| Educational attainment | 26%[7] | 22nd highest |
With a typical property value of $307,905, Kenai's 99611 zip code features the 4th lowest property values in the state.
Kenai homes have an affordability ratio of 3.9, the 12th most affordable among the markets we evaluated.
4. Meadow Lakes
The 99623 zip code in Meadow Lakes ranks No. 4 among Alaska's residential real estate investment markets.
🔎 Key data about Meadow Lakes (99623)
| Data point | Value | Rank in state (of 1,092 markets) |
|---|---|---|
| InvestScore | 73.3 | 4th highest |
| Typical property value | $356,449[1] | 12th lowest |
| Five-year appreciation | 27%[2] | 5th highest |
| Household income | $88,799[3] | 5th highest |
| Affordability ratio | 4.0 | 15th most affordable |
| Five-year population growth | 2.8%[4] | 4th highest |
| Unemployment rate | 4.3%[5] | 2nd lowest |
| Property taxes | $3,804[6] | 13th lowest |
| Educational attainment | 17%[7] | 26th highest |
Property values in Meadow Lakes's 99623 zip code have seen the 5th highest increase among evaluated markets in the state, with an appreciation of 27% over the past five years.
Meadow Lakes's affordability ratio of 4.0 makes it the 15th most affordable among the 1,092 markets we evaluated.
5. Palmer
The 99645 zip code in Palmer rounds out our top five residential real estate investment markets in Alaska.
🔎 Key data about Palmer (99645)
| Data point | Value | Rank in state (of 1,092 markets) |
|---|---|---|
| InvestScore | 72.2 | 5th highest |
| Typical property value | $423,655[1] | 19th lowest |
| Five-year appreciation | 33%[2] | highest |
| Household income | $100,455[3] | highest |
| Affordability ratio | 4.2 | 19th most affordable |
| Five-year population growth | 1.9%[4] | 7th highest |
| Unemployment rate | 4.3%[5] | 2nd lowest |
| Property taxes | $3,673[6] | 10th lowest |
| Educational attainment | 32%[7] | 14th highest |
Property values in Palmer's 99645 zip code rose 33% over the last five years, ranking the city highest among evaluated markets in Alaska.
Palmer homes have an affordability ratio of 4.2, the 19th most affordable among the markets we evaluated.
Buy your investment property with a top local realtor who specializes in helping real estate investors find great deals. Clever can connect you with investing pros at trusted brands like Keller Williams and RE/MAX.
Enter your zip code to get personalized agent matches sent straight to your inbox. Compare your options until you find the perfect fit, or walk away with no obligation. Try Clever's free service today!
Frequently asked questions
See our article Steps to Buying Your First Rental Property to learn the basics of real estate investing for beginners.
You'll learn the importance of setting goals, picking the right market, and more.
Cash investors often use what's called the 70% rule, which suggests they should pay around 70% of a house's after-repair value minus the cost of renovations.
By buying for about 70% of the after-repair value, they're positioning themselves to pay for repairs and other costs, and to lock in a profit.
The 70% rule isn’t a hard-and-fast formula, but a quick guideline investors use to evaluate potential deals.
Investing in residential real estate can be one of the best passive real estate investments in Alaska.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Alaska
To determine the best real estate investments in Alaska we evaluated 1,092 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in Alaska.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes.
