Final FY 2010 Fair Market Rent Documentation System

The Final FY 2010 Savannah, GA MSA FMRs for All Bedroom Sizes

The following table shows the Final FY 2010 FMRs by unit bedrooms.

Final FY 2010 FMRs By Unit Bedrooms
  Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
Final FY 2010 FMR $676 $732 $815 $1,082 $1,117

The remainder of this page provides complete documentation of the development of the Final FY 2010 Fair Market Rents (FMRs) for Savannah, GA MSA. This page provides a summary and details of how the Final FY 2010 FMRs were developed and updated starting with the formation of the FY 2010 FMR Areas from the metropolitan Core-Based Statistical Areas (CBSAs) as established by the Office of Management and Budget and incorporating newly available 2007 one and three year American Community Survey (ACS) Data. FY 2010 FMRs include information from local Random Digit Dialing (RDD) surveys conducted during 2008. Aspects of the derivation of Final FY 2010 rents exclusive to FY 2010 are made explicit in the following text. Aspects unchanged from FY 2009 can be reviewed by clicking on the associated link.

The following defines a summary of the steps taken to generate the Final FY 2010 FMR:

Savannah, GA MSA Final FY 2010 FMR Calculation Summary
Process Step Step Result
1. Begin with Final FY 2009 2 Bedroom FMR $789
2. Remove Trending and CPI Updates from Final FY 2009 2 Bedroom FMR $713
3. Determine 2006 to 2007 Update Factor 1.0274
4. Apply Update Factor (#2 x #3) $733
5a. Calculate Update Factors to 2008 and
5b. Trend Factor to April 1, 2010
1.0718
1.0376
6. Apply Update Factor to 2008 and Trend to Get Final FY 2010 2BR FMR
(#4 x #5a x #5b)
$815

FY 2010 FMR Area Geography

FY 2010 FMR Areas Follow FY 2009 Area Definitions with Modifications

FY 2010 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 FY 2009 FMR documentation which can be found at (Savannah, GA MSA FY 2009 FMR Documentation system). FY 2010 areas reflect changes made to metropolitan areas by OMB through November 20, 2008 as published in OMB bulletin 09-01.

Savannah, GA MSA is made up of the following:

Bryan County, GA ; Chatham County, GA ; and Effingham County, GA .

Savannah, GA MSA FMR Area Derivation (RECAP)

Savannah, GA MSA is entirely within the old Savannah, GA MSA; therefore, no evaluations were made with regard to 2000 Census base rents or 2000 Census Median Family Incomes.


Final FY 2010 FMRs

HUD continues its use of ACS data in FY 2010, by building upon the FY 2009 Final FMRs (Savannah, GA MSA FY 2009 FMR Documentation system). As in FY 2009, HUD uses 2007 ACS data in four different ways according to how many two-bedroom standard quality and recent mover sample cases are available in the FMR area or its Core-Based Statistical Area (CBSA). ACS-1 through ACS-4 areas are described in detail here.

In most cases, Final FY 2010 FMRs are based on changes in rents measured by differences in ACS data collected in 2006 and 2007 and updated CPI rent and utility inflation indexes. Depending on the size of the ACS survey sample, State or Local ACS data is used to update a June 2006-calculated gross rent from the Final FY 2009 FMRs (Savannah, GA MSA FY 2009 FMR Documentation system) to June 2007. In some cases, as described below, the 2007 ACS Survey result is used instead of a 2006 to 2007 updated value. The ACS updated 2007 rent is then adjusted with CPI inflation factors that measure changes from mid-2007 though year end 2008 and 1.25 years of trending to arrive at Final FY 2010 FMRs. RDD survey results are applied where available and appropriate.

Savannah, GA MSA is an ACS-3 area.

ACS-3 areas are FMR Areas which are MSAs, subareas, or nonmetropolitan counties that have fewer than 200 sample cases of two-bedroom standard quality rents.

In ACS-3 FMR areas, the 2006 ACS-to-2007 ACS update factor is the ratio of the 2007 ACS two-bedroom standard quality rent to the 2006 ACS two-bedroom standard quality rent for the entire state containing the FMR area, or a population-weighted average of states specific to the FMR area.

New for FY2010 Final FMRs, HUD has implemented a statistical test to determine if the change in the survey estimates from the 2006 ACS survey estimate to the 2007 ACS survey is statistically signficant. This test is described and completed below.


Generating a June, 2006 Rent from FY 2009 Final FMRs

In order to apply 2006 to 2007 ACS changes to FMRs (ACS data are assumed to be as of June of their respective survey years), FY 2009 FMRs are first deflated to mid-2006 values by removing the CPI inflation and trend factors used to update mid-2006 values to April, 2009 inherint in the Final FY 2009 FMRs.(Savannah, GA MSA FY 2009 FMR Documentation system.)

Rent2006=
Final FY 2009 Rent

(CPI Change2006).5 x (CPI Change2007) x (Trend)

Rent2006=
$789

(1.0503).5 x (1.0401) x (1.0376)

Rent2006=
$789

(1.0248) x (1.0401) x (1.0376)

Rent2006=
$789

(1.0659) x (1.0376)

Rent2006=
$789

1.1061

Rent2006 = $713

The 2006 to 2007 Update Factor using 2007 ACS Data

As stated earlier, Savannah, GA MSA is an ACS-3 area.

There are fewer than 200 standard quality 2006 and 2007 ACS cases for Savannah, GA MSA. Therefore, the 2006 - 2007 update factor is based on the change in standard quality 2-bedroom rents between the 2006 and 2007 ACS at the state level. The update factor for Savannah, GA MSA is 1.0274, which is calculated as the ratio of the 2007 State ACS median rents in Georgia to the 2006 State ACS median standard quality rent.

This update factor yields a 2007 Intermediate rent for Savannah, GA MSA of $713 x 1.0274 = $733.

NOTE: The update factor shown in the calculation above may not match exactly the 2006 to 2007 factor shown throughout the demonstration due to the rounding of Fair Market Rents to whole dollar amounts


The 2007-to-2010 Update Factors

HUD updates the 2007 intermediate rent (as of June 2007) with the appropriate CPI change (local or regional) to establish rents as of December 2008. HUD then applies additional trending or results of Random Digit Dialing (RDD) surveys to update rents to April, 2010, the mid-point of FY 2010.

The Savannah, GA MSA has the following 2007-to-2010 Update Factor:

Update Factors used between June 2006 and April 2008
Year Update Factor Type
6/2007 to 2008 1.0718 Regional CPI factor
2008 to 2010 1.0376 Trend Factor
3% for 1.25 Years
=1.031.25

Final FY 2010 2-Bedroom FMR

The Final FY 2010 2-Bedroom FMR is simply the product of the 2006 Rent from deflated from FINAL FY 2009 FMRs, the 2006 to 2007 update factor and the 2006-to-2010 Update Factors for Savannah, GA MSA as determined above:

Savannah, GA MSA Final FY 2010 FMR

= $713 x 1.0274 x 1.0718 x 1.0376

= $733 x 1.0718 x 1.0376

= $786 x 1.0376

= $816

NOTE: The difference between the demonstration calculated FMR and the actual published FMR shown below is due to rounding.


The Final FY 2010 Rents for All Bedroom Sizes

The following table shows the Final FY 2010 FMRs by unit bedrooms. The FMRs for units with different numbers of bedrooms are computed from the ratio of the 2005 Revised Final FMRs (based on 2000 Decennial Census Data) for the different unit sizes to the 2005 2-Bedroom Revised Final FMRs. These Rent Ratios are applied to the Final FY 2010 2-Bedroom FMR to determine the Final FY 2010 FMRs for the different size units.

Click on the links in the table to see how the bedroom rents were derived.

Final FY 2010 FMRs By Unit Bedrooms
  Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
Final FY 2010 FMR $676 $732 $815 $1,082 $1,117

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., Jun 02, 2010.


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