Fair Market Rent Calculation Methodology
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Fair Market Rents for metropolitan areas and nonmetropolitan FMR areas are developed as follows:
 20082012 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 FY2015.
In areas where the 20082012 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 2012 1year 40th percentile recent mover 2bedroom rent to the 20082012 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 2013 using the relevant (regional or local) change in CPI from annual 2012 to annual 2013 as well as the change in national CPI from annual 2013 to December 2013.
 All estimates are then trended from December 2013 to April 2015 (15 months) with a trending factor of 2.2999% per year.
 The FY2015 FMR is then calculated by multiplying the base rent, the recent mover adjustment factor, the CPI adjustment, and the trend factor.
 FY2015 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 2012 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 BostonCambridgeQuincy, MANH 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.
Area ACS_{2012} 5Year 2Bedroom Adjusted Standard Quality Gross Rent ACS_{2012} 5Year 2Bedroom Adjusted Standard Quality Gross Rent Margin of Error Ratio Result BostonCambridgeQuincy, MANH HUD Metro FMR Area $1,285 $9 $9 / $1,285=0.007 0.007 < 1 Use ACS_{2012} 5Year BostonCambridgeQuincy, MANH HUD Metro FMR Area 2Bedroom Adjusted Standard Quality Gross Rent Area ACS_{2012} Rent BostonCambridgeQuincy, MANH HUD Metro FMR Area $1,285 
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_{2012} 1year Adjusted Standard Quality RecentMover estimate with a Margin of Error Ratio that is less than 1.
Area ACS_{2012} 1Year 2Bedroom Adjusted Standard Quality RecentMover Gross Rent ACS_{2012} 1Year 2Bedroom Adjusted Standard Quality RecentMover Gross Rent Margin of Error Ratio Result BostonCambridgeQuincy, MANH HUD Metro FMR Area $1,410 $38 $38 / $1,410=0.027 0.027 < 1 Use ACS_{2012} 1Year BostonCambridgeQuincy, MANH HUD Metro FMR Area 2Bedroom Adjusted Standard Quality RecentMover Gross Rent The smallest area of geography which contains BostonCambridgeQuincy, MANH HUD Metro FMR Area and has an ACS_{2012} 1year Adjusted Standard Quality RecentMover estimate with a Margin of Error Ratio that is less than 1 is BostonCambridgeQuincy, MANH HUD Metro FMR Area.
 The calculation of the relevant RecentMover Adjustment Factor for BostonCambridgeQuincy, MANH HUD Metro FMR Area is as follows:
ACS_{2012} 5Year Area ACS_{2012} 5Year 40th Percentile 2Bedroom Adjusted Standard Quality Gross Rent ACS_{2012} 1Year 40th Percentile 2Bedroom Adjusted Standard Quality RecentMover Gross Rent BostonCambridgeQuincy, MANH HUD Metro FMR Area $1,285 $1,410 Area Ratio RecentMover Adjustment Factor BostonCambridgeQuincy, MANH HUD Metro FMR Area $1,410 / $1,285
=1.09731.0973 > 1.0 Use calculated RecentMover Adjustment Factor of 1.0973 
The calculation of the relevant CPI Update Factors for BostonCambridgeQuincy, MANH HUD Metro FMR Area is as follows:
HUD updates the 2012 intermediate rent with the ratio of the annual 2013 local or regional CPI to the annual 2012 local or regional CPI to establish rents as of 2013.
HUD then updates this 2013 annual CPI with the ratio of the December 2013 national CPI to the annual 2012 national CPI to establish rents as of December 2013.
Update Factor Type CPI Update Factor 1.0302 Local CPI 
The calculation of the Trend Factor is as follows:
HUD applies an additional 15 months of trending to update rents to April, 2015, the midpoint of FY 2015. This trend factor is determined by taking the average annual growth rate in the national 1Year Median Gross Rent between the 2007 and 2012 American Community Surveys.
ACS_{2007}U.S. 1Year Median Gross Rent ACS_{2012}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 2015 2Bedroom Fair Market Rent for BostonCambridgeQuincy, MANH HUD Metro FMR Area is calculated as follows:
Area ACS_{2012} 5Year Estimate RecentMover Adjustment Factor Annual 2012 to December 2013 CPI Adjustment Trending 2.2999% for 1.25 years FY 2015 2Bedroom FMR BostonCambridgeQuincy, MANH HUD Metro FMR Area $1,285 1.0973 1.0302 1.0288 $1,285 * 1.0973 * 1.0302 * 1.0288=$1,494 
In keeping with HUD policy, the preliminary FY 2015 FMR is checked to ensure that is does not fall below the state minimum; since BostonCambridgeQuincy, MANH HUD Metro FMR Area is a multistate metropolitan area, the highest state minimum of the states comprising BostonCambridgeQuincy, MANH HUD Metro FMR Area is used:
State FY 2015 State Minimum Massachusetts $643 New Hampshire $643 Area Preliminary FY 20152Bedroom FMR FY 2015 Massachusetts and New Hampshire State Minimum Final FY 20152Bedroom FMR BostonCambridgeQuincy, MANH HUD Metro FMR Area $1,494 $643 $1,494 ≥ $643 Use BostonCambridgeQuincy, MANH HUD Metro FMR Area FMR of $1,494
Final FY 2015 Rents for All Bedroom Sizes for BostonCambridgeQuincy, MANH HUD Metro FMR Area
The following table shows the Final FY 2015 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 Final FY 2015 2Bedroom FMR to determine the Final FY 2015 FMRs for the different size units.
Click on the links in the table to see how the bedroom rents were derived.
Final FY 2015 FMRs By Unit Bedrooms  

Efficiency  OneBedroom  TwoBedroom  ThreeBedroom  FourBedroom  
Final FY 2015 FMR  $1,071  $1,196  $1,494  $1,861  $2,023 
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.