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FY 2015 Fair Market Rent Documentation System

The Final FY 2015 District of Columbia FMRs for All Bedroom Sizes

The following table shows the Final FY 2015 FMRs by unit bedrooms for District of Columbia.

Final FY 2015 FMRs By Unit Bedrooms
Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
$1,167 $1,230 $1,458 $1,951 $2,451

FY 2015 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 (District of Columbia FY2011 FMR Documentation system). Although OMB issued new Metropolitan area definitions in February 2013, the Census Bureau did not incorporate these definitions into the 2012 American Community Survey (ACS) data. No changes have been made to these OMB-defined areas since the publication of Final FY2011 FMRs.

District of Columbia is part of the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, which is comprised of the following counties: District of Columbia, District of Columbia; Calvert County, Maryland; Charles County, Maryland; Frederick County, Maryland; Montgomery County, Maryland; Prince George's County, Maryland; Arlington County, Virginia; Clarke County, Virginia; Fairfax County, Virginia; Fauquier County, Virginia; Loudoun County, Virginia; Prince William County, Virginia; Spotsylvania County, Virginia; Stafford County, Virginia; Alexandria city, Virginia; Fairfax city, Virginia; Falls Church city, Virginia; Fredericksburg city, Virginia; Manassas city, Virginia; and Manassas Park city, Virginia. All information here applies to the entirety of the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area.

Fair Market Rent Calculation Methodology

Show/Hide Methodology Narrative

Fair Market Rents for metropolitan areas and non-metropolitan FMR areas are developed as follows:

  1. 2008-2012 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 FY2015.

    In areas where the 2008-2012 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.

  2. HUD calculates a recent mover adjustment factor by comparing a 2012 1-year 40th percentile recent mover 2-bedrooom rent to the 2008-2012 5-year 40th percentile adjusted standard quality gross rent. If either the recent mover and non-recent 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 Sub-Areas), State Metropolitan Portion, Entire State, and Entire US; for non-metropolitan areas, the order of geographies examined is: FMR Area, State Non-Metropolitan Portion, Entire State, and Entire US. The recent mover adjustment factor is floored at one.
  3. 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.
  4. 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.
  5. All estimates are then trended from December 2013 to April 2015 (15 months) with a trending factor of 2.2999% per year.
  6. The FY2015 FMR is then calculated by multiplying the base rent, the recent mover adjustment factor, the CPI adjustment, and the trend factor.
  7. 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 Step-by-Step Process

  1. The following are the 2012 American Community Survey 5-year 2-Bedroom Adjusted Standard Quality Gross Rent estimate and margin of error for Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area. The following calculations are based on data for the entirety of the OMB-defined metropolitan area of Washington-Arlington-Alexandria, DC-VA-MD-WV MSA and not Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area because neither the 2000 Census 40th Percentile Base Rent nor the 2000 Census Median Family Income differs from the official metropolitan area's 2000 Census 40th Percentile Base Rent or 2000 Census Median Family Income by at least 5 percent; however, such differences do exist for other HMFAs within Washington-Arlington-Alexandria, DC-VA-MD-WV MSA.
    Area ACS2012 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent ACS2012 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent Margin of Error Ratio Result
    Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area $1,305 $6 $6 / $1,305=0.005 0.005 < 1 Use ACS2012 5-Year Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area 2-Bedroom Adjusted Standard Quality Gross Rent
    Since the ACS2012 Margin of Error Ratio is less than 1, the ACS2012 Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area value is used for the estimate of 2-Bedroom Adjusted Standard Quality Gross Rent:
    Area ACS2012 Rent
    Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area $1,305
  2. A recent mover adjustment factor is applied based on the smallest area of geography which contains Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area and has an ACS2012 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than 1.
    Area ACS2012 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent ACS2012 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Margin of Error Ratio Result
    Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area $1,372 $28 $28 / $1,372=0.02 0.02 < 1 Use ACS2012 1-Year Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent

    The smallest area of geography which contains Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area and has an ACS2012 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than 1 is Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area.

  3. The calculation of the relevant Recent-Mover Adjustment Factor for Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area is as follows:
    ACS2012 5-Year Area ACS2012 5-Year 40th Percentile 2-Bedroom Adjusted Standard Quality Gross Rent ACS2012 1-Year 40th Percentile 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent
    Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area $1,305 $1,372
    Area Ratio Recent-Mover Adjustment Factor
    Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area $1,372 / $1,305
    =1.0513
    1.0513 > 1.0 Use calculated Recent-Mover Adjustment Factor of 1.0513
  4. The calculation of the relevant CPI Update Factors for Washington-Arlington-Alexandria, DC-VA-MD 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 1.0332 Local CPI
  5. The calculation of the Trend Factor is as follows: HUD applies an additional 15 months of trending to update rents to April, 2015, the mid-point of FY 2015. This trend factor is determined by taking the average annual growth rate in the national 1-Year Median Gross Rent between the 2007 and 2012 American Community Surveys.
    ACS2007U.S. 1-Year Median Gross Rent ACS2012U.S. 1-Year Median Gross Rent Average Annual Change in U.S. 1-Year Median Gross Rent Trend Factor 2.2999% for 1.25 years
    $789 $884 ($884 / $789) 1/5=(1.1204) 1/5=1.022999 1.0229991.25=1.028831
  6. The FY 2015 2-Bedroom Fair Market Rent for Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area is calculated as follows:
    Area ACS2012 5-Year Estimate Recent-Mover Adjustment Factor Annual 2012 to December 2013 CPI Adjustment Trending 2.2999% for 1.25 years FY 2015 2-Bedroom FMR
    Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area $1,305 1.0513 1.0332 1.0288 $1,305 * 1.0513 * 1.0332 * 1.0288=$1,458
  7. In keeping with HUD policy, the preliminary FY 2015 FMR is checked to ensure that is does not fall below the state minimum; since Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area is a multistate metropolitan area, the highest state minimum of the states comprising Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area is used:
    State FY 2015 State Minimum
    District Of Columbia $643
    Maryland $643
    Virginia $643
    West Virginia $628
    The relevant state minimum is that of District Of Columbia, Maryland, Virginia at $643.
    Area Preliminary FY 20152-Bedroom FMR FY 2015 District Of Columbia, Maryland, Virginia State Minimum Final FY 20152-Bedroom FMR
    Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area $1,458 $643 $1,458 ≥ $643 Use Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area FMR of $1,458

Final FY 2015 Rents for All Bedroom Sizes for Washington-Arlington-Alexandria, DC-VA-MD 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 40th percentile adjusted standard quality gross rent for the different unit sizes to the 40th percentile adjusted standard quality 2-Bedroom gross rent from the 2006-2010 5-year ACS. These Rent Ratios are applied to the Final FY 2015 2-Bedroom 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 One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
Final FY 2015 FMR $1,167 $1,230 $1,458 $1,951 $2,451

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.

Other HUD Metro FMR Areas in the Same MSA

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Prepared by the Economic and Market Analysis Division, HUD. Technical problems or questions? Contact Us.