FY 2014 FMR areas continue to use the revised Office of Management and Budget (OMB) area definitions that were first issued in 2003 along with HUD defined Metropolitan areas (HMFAs) as described in the
FY2011 FMR documentation which can be found at (Baltimore County FY2012 FMR Documentation system).
No changes have been made to these OMB-defined areas since the publication of Final FY2013 FMRs
NOTE:This is a 50^{th} Percentile $fmrtype FY 2014 FMR area as established by HUD regulations. This page presents 40^{th} Percentile Rents for Baltimore County.
Fair Market Rent Calculation Methodology - Updated for FY2014
Fair Market Rents for metropolitan areas and non-metropolitan FMR areas are developed as follows:
2006-2010 5-year American Community Survey (ACS) estimates of 2-bedroom adjusted standard quality gross rents calculated for each FMR area are used as the new basis for FY2014.
In areas where the 2006-2010 5-year ACS 2-bedroom adjusted standard quality gross rent estimate is less than its respective margin of error, the state non-metro estimate of 2-bedroom adjusted standard quality gross rent is used.
HUD calculates a recent-mover adjustment factor by comparing a 2010 1-year 40th percentile recent-mover 2-bedrooom rent to the 2006-2010 5-year 40th percentile adjusted standard quality gross rent for the same geographic area in the following manner. A statistical comparison is made between the 2006-2010 5-year 2-bedroom adjusted standard quality gross rent and the 2010 1-year 2-bedroom recent-mover gross rent for smallest geographic area containing the FMR area for which the 2006-2010 5-year ACS 2-bedroom adjusted standard quality gross rent estimate is less than its respective margin of error. For metropolitan areas, the order of geographies examined is: Entire Metropolitan Area (for Metropolitan Sub-Areas), State Metropolitan Portion, Entire State, and Entire US; for non-metropolitan areas, the order of geographies examined is: State Non-Metropolitan Portion, Entire State, and Entire US.
HUD calculates the appropriate recent-mover adjustment factor between the 5-year data and the 1-year data and applies this to the 5-year base rent estimate.
Rents are calculated as of December 2011 using the relevant (regional or local) change in CPI from annual 2010 to annual 2011 as well as then change in national CPI from annual 2010 to December 2011.
All estimates are then trended from December 2011 to April 2014 (15 months) with a trending factor of 3.27 percent per year.
The FY2014 FMR is then calculated by multiplying the base rent, the recent-mover adjustment factor, the CPI adjustment, and the trend factor.
FY2014 FMRs are then compared to a state minimum rent, and any area whose preliminary FMR falls below this value is raised to the level of the state minimum.
The results of the Fair Market Rent Step-by-Step Process
Baltimore-Towson, MD HUD Metro FMR Area Results
The following are the 2010 American Community Survey 5-year 2-Bedroom Adjusted Standard Quality Gross Rent estimate and margin of error for Baltimore-Towson, MD HUD Metro FMR Area.
The following calculations are based on data for Baltimore-Towson, MD HUD Metro FMR Area and not the entirety of the OMB-defined metropolitan area of Baltimore-Towson, MD MSA because the 2000 Census 40^{th} Percentile Base Rent and/or 2000 Census Median Family Income differs from the official metropolitan area's 2000 Census 40^{th} Percentile Base Rent and/or 2000 Census Median Family Income by at least 5 percent.
For additional information on area definitions please see the Baltimore-Towson, MD HUD Metro FMR Area FY2012 FMR Documentation system.
Area
ACS_{2010} 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent
ACS_{2010} 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent Margin of Error
0.008 < 1 Use ACS_{2010} 5-Year Baltimore-Towson, MD HUD Metro FMR Area 2-Bedroom Adjusted Standard Quality Gross Rent
Since the ACS_{2010} Margin of Error Ratio is less than 1, the ACS_{2010}Baltimore-Towson, MD HUD Metro FMR Area value is used for the estimate of 2-Bedroom Adjusted Standard Quality Gross Rent:
Area
ACS_{2010} Rent
Baltimore-Towson, MD HUD Metro FMR Area
$1,025
A recent-mover adjustment factor is applied based on the smallest area of geography which contains Baltimore-Towson, MD HUD Metro FMR Area and has an ACS_{2010} 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than 1:
Area
ACS_{2010} 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent
ACS_{2010} 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Margin of Error
0.031 < 1 Use ACS_{2010} 1-Year Baltimore-Towson, MD HUD Metro FMR Area 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent
The smallest area of geography which contains Baltimore-Towson, MD HUD Metro FMR Area and has an ACS_{2010} 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than 1 is Baltimore-Towson, MD HUD Metro FMR Area.
The calculation of the relevant Recent-Mover Adjustment Factor for Baltimore-Towson, MD HUD Metro FMR Area is as follows:
ACS_{2010} 5-Year Area
ACS_{2010} 5-Year 40th Percentile 2-Bedroom Adjusted Standard Quality Gross Rent
1.0537 > 1.0 Use calculated Recent-Mover Adjustment Factor of 1.0537
The calculation of the relevant CPI Update Factors for Baltimore-Towson, MD HUD Metro FMR Area is as follows:
HUD updates the 2010 intemargin_errordiate rent with the ratio of the annual 2011 local or regional CPI to the annual 2010 local or regional CPI to establish rents as of 2011.
HUD then updates this 2011 annual CPI with the ratio of the December 2011 national CPI to the annual 2010 national CPI to establish rents as of December 2011.
The calculation of the Trend Factor is as follows:
HUD applies an additional 15 months of trending to update rents to April, 2014, the mid-point of FY 2014. This trend factor is determined by taking the average annual growth rate in the national 1-Year Recent Mover Adjusted Standard Quality Gross Rent between the 2005 and 2010 American Community Surveys.
ACS_{2005}U.S. 1-Year Median Gross Rent
ACS_{2010}U.S. 1-Year Median Gross Rent
Average Annual Change in U.S. 1-Year Median Gross Rent
Trend Factor 3.27% for 1.25 years
$728
$855
($855 / $728) ^ (1/5) = (1.1745) ^ (1/5) = 1.0327
1.0327 ^ (1.25) = 1.0410
The FY 2014 2-Bedroom Fair Market Rent for Baltimore-Towson, MD HUD Metro FMR Area is calculated as follows:
Area
ACS_{2010} 5-Year Estimate
Recent-Mover Adjustment Factor
Annual 2010 to December 2011 CPI Adjustment
Trending 3.27% for 1.25 years
FY 2014 2-Bedroom FMR
Baltimore-Towson, MD HUD Metro FMR Area
$1,025
1.0537
1.0426
1.0410
$1,025 * 1.0537 * 1.0426 * 1.0410 = $1,172
In keeping with HUD policy, the preliminary FY 2014 FMR is checked to ensure that is does not fall below the state minimum for Maryland:
$1,172 >= $637 Use Baltimore-Towson, MD HUD Metro FMR Area FMR $1,172
NOTE: Due to differences in the computing platforms used to generate the official FY 2014 FMR estimates, and this
web system, the calculated value of $1,172 is different that the official value of $1,161
because of rounding.
$fmrtype FY 2014 Rents for All Bedroom Sizes for Baltimore-Towson, MD HUD Metro FMR Area
The following table shows the FY 2014 40th Percentile Rents by bedroom sizes.
The 40th Percentile Rents for units
with different numbers of bedrooms are computed from the ratio of the
40^{th} percentile adjusted standard quality gross rent for the different unit sizes to the
40^{th} percentile adjusted standard quality 2-Bedroom gross rent from the 2006-2010 5-year ACS. These Rent Ratios are applied to the
FY 2014 40th Percentile 2-Bedroom Rent
to determine the FY 2014 40th Percentile Rents
for the different size units.
Click on the links in the table to see how the bedroom rents were derived.
$fmrtype FY 2014 40th Percentile Rents By Unit Bedrooms
The FMRs for unit sizes larger than four bedrooms are calculated by adding 15 percent to the four bedroom FMR, for each extra bedroom.
For example, the FMR for a five bedroom unit is 1.15 times the four bedroom FMR, and the FMR for a six bedroom unit is 1.30 times the four bedroom
FMR. FMRs for single-room occupancy units are 0.75 times the zero bedroom (efficiency) FMR.
Data file last updated Wed., May 07, 2014.
FY 2014 40^{th } Percentile Rents for Other 50^{th } Percentile Areas