Fair Market Rent Calculation Methodology
Show/Hide Methodology Narrative
Fair Market Rents for metropolitan areas and nonmetropolitan FMR areas are developed as follows:
 20112015 5year American Community Survey (ACS) estimates of 2bedroom adjusted standard quality gross rents calculated for each FMR area are used as the new basis for FY2018.
In areas where the 20112015 5year ACS 2bedroom adjusted standard quality gross rent estimate is less than its respective margin of error, the state nonmetro estimate of 2bedroom adjusted standard quality gross rent is used.
 HUD calculates a recent mover adjustment factor by comparing a 2015 1year 40th percentile recent mover 2bedroom rent to the 20112015 5year 40th percentile adjusted standard quality gross rent. If either the recent mover and nonrecent mover rent estimates has a margin of error that includes zero, HUD uses the recent mover adjustment for a larger geography. For metropolitan areas, the order of geographies examined is: FMR Area, Entire Metropolitan Area (for Metropolitan SubAreas), State Metropolitan Portion, Entire State, and Entire US; for nonmetropolitan areas, the order of geographies examined is: FMR Area, State NonMetropolitan Portion, Entire State, and Entire US. The recent mover adjustment factor is floored at one.
 HUD calculates the appropriate recent mover adjustment factor between the 5year data and the 1year data and applies this to the 5year base rent estimate.
 Rents are calculated as of December 2016 using the relevant (regional or local) change in CPI from annual 2015 to annual 2016 as well as the change in national CPI from annual 2016 to December 2016.
 All estimates are then trended from December 2016 to April 2018 (15 months) with a trending factor of 2.2999% per year.
 The FY2018 FMR is then calculated by multiplying the base rent, the recent mover adjustment factor, the CPI adjustment, and the trend factor.
 FY2018 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 StepbyStep Process

The following are the 2015 American Community Survey 5year 2Bedroom Adjusted Standard Quality Gross Rent estimate and margin of error for BostonCambridgeQuincy, MANH HUD Metro FMR Area.
The following calculations are based on data for BostonCambridgeQuincy, MANH HUD Metro FMR Area and not the entirety of the OMBdefined metropolitan area of 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.
Area ACS_{2015} 5Year 2Bedroom Adjusted Standard Quality Gross Rent ACS_{2015} 5Year 2Bedroom Adjusted Standard Quality Gross Rent Margin of Error Ratio Result BostonCambridgeQuincy, MANH HUD Metro FMR Area N/A N/A N/A Check ACS_{2014} Base Rent Basis Area FY2017 Base Rent Basis FY2017 Base Rent BostonCambridgeQuincy, MANH HUD Metro FMR Area Local Estimate Area ACS_{2014} Base Rent ACS_{2014} State NonMetro 5Year 2Bedroom Adjusted Standard Quality Gross Rent ACS_{2015} State NonMetro 5Year 2Bedroom Adjusted Standard Quality Gross Rent FY2018 Base Rent BostonCambridgeQuincy, MANH HUD Metro FMR Area * ( / )= * ODBscript Error: Nonnumeric expression: (null) / (null)
[Error in file 2015summary.odn line 984]=

A recent mover adjustment factor is applied based on the smallest area of geography which contains BostonCambridgeQuincy, MANH HUD Metro FMR Area and has an ACS_{2015} 1year Adjusted Standard Quality RecentMover estimate with a Margin of Error Ratio that is less than 1.
Area ACS_{2015} 1Year 2Bedroom Adjusted Standard Quality RecentMover Gross Rent ACS_{2015} 1Year 2Bedroom Adjusted Standard Quality RecentMover Gross Rent Margin of Error Ratio Result BostonCambridgeQuincy, MANH HUD Metro FMR Area N/A N/A N/A No ACS_{2015} 1year Adjusted Standard Quality RecentMover estimate produced for BostonCambridgeQuincy, MANH HUD Metro FMR Area N/A N/A N/A No ACS_{2015} 1year Adjusted Standard Quality RecentMover estimate produced for Massachusetts Metro N/A N/A N/A No ACS_{2015} 1year Adjusted Standard Quality RecentMover estimate produced forMassachusetts Metro State N/A N/A N/A No ACS_{2015} 1year Adjusted Standard Quality RecentMover estimate produced for Massachusetts $rm_result$
 The calculation of the relevant RecentMover Adjustment Factor for BostonCambridgeQuincy, MANH HUD Metro FMR Area is as follows:
ACS_{2015} 5Year Area ACS_{2015} 5Year 40th Percentile 2Bedroom Adjusted Standard Quality Gross Rent ACS_{2015} 1Year 40th Percentile 2Bedroom Adjusted Standard Quality RecentMover Gross Rent Area Ratio RecentMover Adjustment Factor /
=ODBscript Error: Nonnumeric expression: (null) / (null)
[Error in file 2015summary.odn line 1317]ODBscript Error: Nonnumeric expression: (null) / (null)
[Error in file 2015summary.odn line 1321]< 1.0 RecentMover Adjustment Factor floored at 1.0

The calculation of the relevant CPI Update Factors for BostonCambridgeQuincy, MANH HUD Metro FMR Area is as follows:
HUD updates the 2015 intermediate rent with the ratio of the annual 2016 local or regional CPI to the annual 2015 local or regional CPI to establish rents as of 2016.
HUD then updates this 2016 annual CPI with the ratio of the December 2016 national CPI to the annual 2015 national CPI to establish rents as of December 2016.
Update Factor Type CPI Update Factor ODBscript Error: Nonnumeric expression: (null) * 1.007027
[Error in file 2015summary.odn line 1461]Regional CPI 
The calculation of the Trend Factor is as follows:
HUD applies an additional 15 months of trending to update rents to April, 2018, the midpoint of FY 2018. This trend factor is determined by taking the average annual growth rate in the national 1Year Median Gross Rent between the 2010 and 2015 American Community Surveys.
ACS_{2010}U.S. 1Year Median Gross Rent ACS_{2015}U.S. 1Year Median Gross Rent Average Annual Change in U.S. 1Year Median Gross Rent Trend Factor 2.2999% for 1.25 years $789 $884 ($884 / $789) ^{1/5}=(1.1204) ^{1/5}=1.022999 1.022999^{1.25}=1.028831  The FY 2018 2Bedroom Fair Market Rent for BostonCambridgeQuincy, MANH HUD Metro FMR Area is calculated as follows:
Area ACS_{2015} 5Year Estimate RecentMover Adjustment Factor Annual 2015 to December 2016 CPI Adjustment Trending 2.2999% for 1.25 years FY 2018 2Bedroom FMR BostonCambridgeQuincy, MANH HUD Metro FMR Area 1.0 ODBscript Error: Nonnumeric expression: (null) * 1.007027
[Error in file 2015summary.odn line 1524]1.007
1.0288 * 1.0 * ODBscript Error: Nonnumeric expression: (null) * 1.007027
[Error in file 2015summary.odn line 1529]1.0070 * 1.0288=$1
 In keeping with HUD policy, the preliminary FY 2018 FMR is checked to ensure that is does not fall below the state minimum for Massachusetts:
An error occurred and calculation steps cannot be displayed.
$fmrtype$ FY 2018 Rents for All Bedroom Sizes for BostonCambridgeQuincy, MANH HUD Metro FMR Area
The following table shows the FY 2018 FMRs by bedroom sizes. The FMRs 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 2Bedroom gross rent from the 20062010 5year ACS. These Rent Ratios are applied to the FY 2018 2Bedroom FMR to determine the FY 2018 FMRs for the different size units.
Click on the links in the table to see how the bedroom rents were derived.
$fmrtype$ FY 2018 FMRs By Unit Bedrooms  

Efficiency  OneBedroom  TwoBedroom  ThreeBedroom  FourBedroom  
FY 2018 FMR  ODBscript Error: Nonnumeric expression: * (null)

ODBscript Error: Nonnumeric expression: * (null)

$1  ODBscript Error: Nonnumeric expression: * (null)

ODBscript Error: Nonnumeric expression: * (null)

Unadjusted Rent Ratio  
State MinimumBased $fmrtype$ FY 2018 FMR 
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 singleroom occupancy units are 0.75 times the zero bedroom (efficiency) FMR.