The 99712 zip code in Fairbanks tops our ranking of the most affordable places to live in Alaska.
Whether you're searching for affordable cities and towns to buy a home or the places with the lowest cost of living to rent, consider the following zip codes.
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Top 10 most affordable places to live in Alaska
| Rank | City | Affordability Score | Median home value | Rental costs |
|---|---|---|---|---|
| 1 | Fairbanks 🥇 | 100.0 | $312,297 | $1,853 |
| 2 | North Pole 🥈 | 87.3 | $324,081 | $1,994 |
| 3 | Anchorage 🥉 | 85.5 | $396,480 | $1,539 |
| 4 | Kenai | 84.1 | $316,938 | $1,853 |
| 5 | Eagle River | 82.7 | $477,851 | $2,297 |
| 6 | Ketchikan | 78.0 | $393,100 | $1,853 |
| 7 | Meadow Lakes | 75.9 | $366,913 | $1,621 |
| 8 | Palmer | 72.0 | $434,805 | $1,630 |
| 9 | Juneau | 69.8 | $476,934 | $1,853 |
| 10 | Kodiak | 69.0 | $426,124 | $1,853 |
What these affordable cities and towns have in common
The 10 zip codes we ranked share a common trait: a low cost of living relative to the Alaska median.
Median home values, rental costs, and property taxes generally sit below the state averages, while household incomes remain strong enough to keep home affordability ratios manageable. Below, we look at each market in detail.
1. Fairbanks
Here's why the 99712 zip code in Fairbanks is Alaska's most affordable place to live.
🔎 Key data about Fairbanks
| Data point | Value | Rank (out of 22 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 100.0 | No. 1 | N/A |
| Median home value | $312,297[1] | No. 3 | -$86,091 |
| Home affordability ratio | 2.8 | No. 1 | -1.2 |
| Home value five-year change | 4.4%[2] | No. 1 | -16.6% |
| Home value one-year forecast | -2.0%[3] | No. 1 | -1.3% |
| Rental costs | $1,853[4] | No. 12 | $0 |
| Rent affordability ratio | 1.86% | No. 10 | 0.0% |
| Median household income | $112,808[5] | No. 5 | $13,359 |
| Property taxes | $3,574[6] | No. 5 | -$629 |
| Energy costs | $0.30 kWh[7] | No. 19 | $0.07 |
Fairbanks's 99712 zip code is the cheapest place to live in Alaska, leading the 22 markets we evaluated.
The median home value is $312,297, making it the 3rd-cheapest housing market in the state. Forecasts project a -2.0% change in home values in the next year. Rent in the zip code averages $1,853 per month, which is the 10th cheapest amount in Alaska.
The median property tax for homeowners in Fairbanks is $3,574 per household, the No. 5 ranked market in Alaska.
Residents pay $0.30 per kWh of electricity, which ranks No. 19 among Alaska markets.
📈 Thinking about buying in Alaska? See our complete housing market outlook for the data, trends, and timing insights Alaska buyers need to know.
2. North Pole
The 99705 zip code is the 2nd-cheapest place to live in Alaska.
🔎 Key data about North Pole
| Data point | Value | Rank (out of 22 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 87.3 | No. 2 | N/A |
| Median home value | $324,081[1] | No. 6 | -$74,306 |
| Home affordability ratio | 3.3 | No. 2 | -0.7 |
| Home value five-year change | 10.2%[2] | No. 4 | -10.8% |
| Home value one-year forecast | -1.9%[3] | No. 3 | -1.2% |
| Rental costs | $1,994[4] | No. 19 | $142 |
| Rent affordability ratio | 2.06% | No. 18 | 0.2% |
| Median household income | $96,964[5] | No. 11 | -$2,485 |
| Property taxes | $3,577[6] | No. 6 | -$626 |
| Energy costs | $0.30 kWh[7] | No. 19 | $0.07 |
North Pole's 99705 zip code has a median home value of $324,081, which is the 6th-cheapest housing market in Alaska. You can rent for an average of $1,994 per month. That's the 19th-cheapest price in the state.
The average household income in the zip code is $96,964, which ranks 11th-highest in the state.
Homeowners in North Pole pay a median property tax of $3,577 per year, making it the 6th-most affordable market in Alaska.
North Pole ranks No. 19 among Alaska energy markets. You'll pay $0.30 per kWh of electricity.
3. Anchorage
The 3rd-least-expensive place to live in Alaska is Anchorage's 99517 zip code.
🔎 Key data about Anchorage
| Data point | Value | Rank (out of 22 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 85.5 | No. 3 | N/A |
| Median home value | $396,480[1] | No. 13 | -$1,907 |
| Home affordability ratio | 3.8 | No. 7 | -0.2 |
| Home value five-year change | 21.7%[2] | No. 14 | 0.7% |
| Home value one-year forecast | -0.4%[3] | No. 14 | 0.3% |
| Rental costs | $1,539[4] | No. 3 | -$314 |
| Rent affordability ratio | 1.48% | No. 2 | -0.4% |
| Median household income | $103,880[5] | No. 7 | $4,431 |
| Property taxes | $4,858[6] | No. 16 | $655 |
| Energy costs | $0.23 kWh[7] | No. 13 | $0.00 |
The No. 13 cheapest housing market in Alaska is Anchorage's 99517 zip code, with a median home value of $396,480. Rents in the market average $1,539 per month, making it the 3rd-most affordable rental market in the state.
The median property tax for households in Anchorage is $4,858, which makes it the 16th-cheapest place in Alaska. Anchorage ranks No. 13 among Alaska markets by energy costs. Residents pay $0.23 per kWh of electricity.
4. Kenai
The 99611 zip code in Kenai comes in at No. 4 on our list of the cheapest places to live in Alaska.
🔎 Key data about Kenai
| Data point | Value | Rank (out of 22 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 84.1 | No. 4 | N/A |
| Median home value | $316,938[1] | No. 4 | -$81,449 |
| Home affordability ratio | 4.0 | No. 10 | 0.0 |
| Home value five-year change | 16.4%[2] | No. 7 | -4.6% |
| Home value one-year forecast | -0.7%[3] | No. 6 | 0.0% |
| Rental costs | $1,853[4] | No. 12 | $0 |
| Rent affordability ratio | 1.86% | No. 10 | 0.0% |
| Median household income | $79,757[5] | No. 18 | -$19,692 |
| Property taxes | $1,936[6] | No. 2 | -$2,267 |
| Energy costs | $0.25 kWh[7] | No. 15 | $0.01 |
The No. 4 cheapest housing market in Alaska is Kenai's 99611 zip code, where the median home value is $316,938. Renters here pay an average of $1,853 per month.
When it comes to energy costs, Kenai ranks 15th among Alaska markets. Residents pay $0.25 per kWh of electricity.
The median property tax for households in the zip code is $1,936, which makes it the 2nd-cheapest market in Alaska.
5. Eagle River
The 99577 zip code in Eagle River ranks No. 5 among Alaska's most affordable places to live.
🔎 Key data about Eagle River
| Data point | Value | Rank (out of 22 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 82.7 | No. 5 | N/A |
| Median home value | $477,851[1] | No. 21 | $79,464 |
| Home affordability ratio | 3.5 | No. 4 | -0.5 |
| Home value five-year change | 20.0%[2] | No. 11 | -1.1% |
| Home value one-year forecast | -0.4%[3] | No. 14 | 0.3% |
| Rental costs | $2,297[4] | No. 21 | $445 |
| Rent affordability ratio | 1.68% | No. 4 | -0.2% |
| Median household income | $136,900[5] | No. 2 | $37,451 |
| Property taxes | $5,454[6] | No. 21 | $1,251 |
| Energy costs | $0.22 kWh[7] | No. 5 | -$0.01 |
Eagle River's 99577 zip code has a median home value of $477,851, the 21st-cheapest housing market in the state. Forecasts project a -0.4% change in home values in the next year.
The median property tax per household in Eagle River is $5,454. It's the 21st-cheapest market by tax rate in Alaska.
6. Ketchikan
The No. 6 most affordable city in Alaska is the 99901 zip code.
🔎 Key data about Ketchikan
| Data point | Value | Rank (out of 22 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 78.0 | No. 6 | N/A |
| Median home value | $393,100[1] | No. 12 | -$5,287 |
| Home affordability ratio | 4.2 | No. 15 | 0.2 |
| Home value five-year change | 18.6%[2] | No. 9 | -2.4% |
| Home value one-year forecast | -1.1%[3] | No. 5 | -0.4% |
| Rental costs | $1,853[4] | No. 12 | $0 |
| Rent affordability ratio | 1.86% | No. 10 | 0.0% |
| Median household income | $92,885[5] | No. 12 | -$6,564 |
| Property taxes | $2,619[6] | No. 3 | -$1,584 |
| Energy costs | $0.25 kWh[7] | No. 16 | $0.01 |
The back half of our top 10 kicks off with Ketchikan's 99901 zip code, which has the 12th-cheapest home values in Alaska. The median home value is $393,100. Rents average $1,853 per month, making it the 12th-most affordable rental market in the state.
Residents pay $0.25 per kWh of electricity. It's the 16th-cheapest energy market.
7. Meadow Lakes
Meadow Lakes's 99623 zip code is the 7th-cheapest place to live in Alaska.
🔎 Key data about Meadow Lakes
| Data point | Value | Rank (out of 22 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 75.9 | No. 7 | N/A |
| Median home value | $366,913[1] | No. 11 | -$31,475 |
| Home affordability ratio | 4.1 | No. 13 | 0.1 |
| Home value five-year change | 27.3%[2] | No. 19 | 6.3% |
| Home value one-year forecast | -0.5%[3] | No. 9 | 0.2% |
| Rental costs | $1,621[4] | No. 4 | -$232 |
| Rent affordability ratio | 1.83% | No. 9 | 0.0% |
| Median household income | $88,799[5] | No. 13 | -$10,650 |
| Property taxes | $3,804[6] | No. 11 | -$399 |
| Energy costs | $0.22 kWh[7] | No. 5 | -$0.01 |
You'll find the 11th-cheapest home values in Alaska in Meadow Lakes's 99623 zip code. The median value: $366,913. Renters in Meadow Lakes pay an average of $1,621 per month.
Homeowners in Meadow Lakes pay a median property tax of $3,804 per year, which is Alaska's 11th-most affordable market.
The average household income is $88,799, which ranks 13th-highest in the state.
8. Palmer
The 8th-least-expensive place to live in Alaska is Palmer's 99645 zip code.
🔎 Key data about Palmer
| Data point | Value | Rank (out of 22 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 72.0 | No. 8 | N/A |
| Median home value | $434,805[1] | No. 17 | $36,418 |
| Home affordability ratio | 4.3 | No. 17 | 0.3 |
| Home value five-year change | 33.2%[2] | No. 22 | 12.1% |
| Home value one-year forecast | -0.5%[3] | No. 9 | 0.2% |
| Rental costs | $1,630[4] | No. 5 | -$223 |
| Rent affordability ratio | 1.62% | No. 3 | -0.2% |
| Median household income | $100,455[5] | No. 9 | $1,006 |
| Property taxes | $3,673[6] | No. 8 | -$530 |
| Energy costs | $0.27 kWh[7] | No. 17 | $0.03 |
The 17th-cheapest housing market in Alaska is Palmer's 99645 zip code, with a median home value of $434,805. Renters pay an average of $1,630 per month, the No. 5 rental market in the state.
The median property tax for households in Palmer is $3,673, which makes it the 8th-cheapest place in Alaska. The average household income of $100,455 ranks 9th.
9. Juneau
Juneau's 99801 zip code is one of Alaska's most affordable towns, sneaking into the top ten of our rankings.
🔎 Key data about Juneau
| Data point | Value | Rank (out of 22 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 69.8 | No. 9 | N/A |
| Median home value | $476,934[1] | No. 20 | $78,547 |
| Home affordability ratio | 4.7 | No. 20 | 0.7 |
| Home value five-year change | 20.0%[2] | No. 13 | -1.0% |
| Home value one-year forecast | -0.5%[3] | No. 9 | 0.2% |
| Rental costs | $1,853[4] | No. 12 | $0 |
| Rent affordability ratio | 1.86% | No. 10 | 0.0% |
| Median household income | $102,217[5] | No. 8 | $2,768 |
| Property taxes | $4,280[6] | No. 14 | $77 |
| Energy costs | $0.13 kWh[7] | No. 1 | -$0.11 |
The 20th-cheapest housing market in Alaska is Juneau's 99801 zip code, where the median home value is $476,934. Renters pay an average of $1,853 per month. It's the state's 12th-cheapest rental market.
The median property tax for households within the zip code is $4,280, which makes it the 14th-cheapest property tax rate in Alaska.
10. Kodiak
The final spot on our list of the most affordable places to live in Alaska goes to the 99615 zip code in Kodiak.
🔎 Key data about Kodiak
| Data point | Value | Rank (out of 22 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 69.0 | No. 10 | N/A |
| Median home value | $426,124[1] | No. 15 | $27,737 |
| Home affordability ratio | 4.8 | No. 21 | 0.8 |
| Home value five-year change | 14.6%[2] | No. 5 | -6.4% |
| Home value one-year forecast | -0.7%[3] | No. 6 | 0.0% |
| Rental costs | $1,853[4] | No. 12 | $0 |
| Rent affordability ratio | 1.86% | No. 10 | 0.0% |
| Median household income | $88,456[5] | No. 14 | -$10,993 |
| Property taxes | $3,694[6] | No. 9 | -$509 |
| Energy costs | $0.19 kWh[7] | No. 2 | -$0.05 |
Rounding out our top 10 is Kodiak's 99615 zip code, with the 15th-cheapest home values in Alaska.
The median home value is $426,124. Rent in the market costs $1,853 per month on average.
The median property tax for households in Kodiak is $3,694, which is the 9th-cheapest property tax rate in the state.
Kodiak ranks No. 2 among Alaska markets by energy costs, with households paying $0.19 per kWh of electricity.
What questions about these cities should I ask local agents?
Once you've found a town you're interested in, you'll want to ask a local agent for details our rankings can't capture. Start with these four questions:
- What neighborhoods inside this zip code have the best resale value?
- What's the rental market like right now?
- Are there local property tax exemptions or homestead programs you'd qualify for?
- What are the most common surprises buyers run into here?
🏡 Need a local agent? We can connect you with an expert who knows the market.
Frequently asked questions about the least expensive places to live in Alaska
Based on Clever's Affordability Score, the 99712 zip code in Fairbanks is the cheapest place to live in Alaska.
The median home value is $312,297, and the median household income is $112,808, giving Fairbanks a home affordability ratio of 2.8, meaning a typical home costs about that many times the median annual income.
See our Affordability Score methodology and the full ranking of the 10 cheapest places to live in Alaska.
The median home value in Alaska is $398,387.
See the rankings above for how individual cities compare to these state-wide figures.
Alaska is currently a neutral market, according to Clever's Market Heat Index.
The index reflects the balance between buyer demand and seller supply, which affects how much negotiating power buyers and sellers have in any given market.
Markets also vary by city, county, and neighborhood. It's always good to check with a local real estate agent to understand the dynamics of a given local market.
The median amount homeowners pay in property taxes in Alaska is $4,203 per year.
Property taxes are a key part of the overall cost of living, and they vary significantly by location. The per-city tax figures in the rankings above show how each of the 10 cheapest places stacks up against the Alaska median.
📍 The 10 cheapest places to live in your region
How we ranked the most affordable cities and towns in Alaska
We evaluated 22 zip codes in Alaska with a population over 10,000 on home values, rental costs, energy rates, property taxes, and five other affordability indicators. We then assigned each market an Affordability Score based on its weighted and combined rankings.
Our proprietary Affordability Score is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the affordability of a particular zip code. It takes into account these key data points for each zip code.
- Median home value: The median home value for each zip code comes from the Zillow Home Value Index. The lower the median home value relative to the median value in Alaska, the higher our score on this component. We assign a weight of 13.0% to median home value.
- Home affordability ratio. The home affordability ratio is the typical median home value divided by the median household income in the zip code, which reveals the number of years of household income needed to afford a home in that zip code. A lower ratio is better because it means more households can afford a home. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 28.0% to the home affordability ratio.
- Home value five-year change: The home value five-year change is the amount that the median home value in the zip code has risen or fallen during the last five years. Our data comes from the Zillow Home Value Index. We assign a weight of 10.0% to the home value five-year change.
- Home value one-year forecast: The home value one-year forecast comes from Zillow Forecast data. It projects how much home values in the zip code are forecasted to change in the next year. We assign a weight of 8.0% to the home value one-year forecast.
- Rental costs. The rental costs are the observed rents in the zip code, sourced from the Zillow Observed Rent Index. The index includes "listed rents that fall into the 40th to 60th percentile range for all homes and apartments in a given region." We assign a weight of 7.0% to rental costs.
- Median household income: The inflation-adjusted median household income figures for the zip code comes from the U.S. Census American Community Survey. We assign a weight of 5.0% to median household income.
- Rent affordability ratio. The rent affordability ratio is the ratio of rental costs divided by median household income, which provides the percentage of household income needed to pay a typical month’s rent in the zip code. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 17.0% to the rent affordability ratio.
- Property taxes: The property tax figures are the median real estate taxes paid in the zip code, sourced from the U.S. Census American Community Survey. The lower the property tax rate relative to the Alaska average, the higher our score on this component. We assign a weight of 8.0% to property taxes.
- Energy costs: The energy costs are the costs of a kilowatt hour (kWh) of residential electricity in the zip code, sourced from the U.S. Department of Energy. The lower the cost of electricity relative to the Alaska average, the higher our score on this component. We assign a weight of 4.0% to energy costs.
✍️ Editor’s note: Our Affordability Score identifies the most affordable places in a state by zip code. Often the zip code we identify will represent an entire city or portion of a city.
Occasionally the zip code we identify will encompass an area that includes one or more small towns. In these cases, the data we’ve gathered applies to the entire zip code, not just the single town we’re using to help identify the zip code's location.
If you’re looking to move to one of these affordable places, we recommend doing additional research to make sure the costs in the area — and the quality of life it offers — meet your specific needs.
Why you should trust us
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Our team is committed to making home purchasing more transparent by educating buyers and sellers through guides like this one. Our writers, editors, and industry-leading researchers strive to provide readers with the most up-to-date, accurate, and useful information.
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