FY 2019 Income Limits Documentation System

Median Family Income Calculation Methodology

FY 2019 estimates take advantage of the 2017 American Community Survey (ACS) 3-year data published by the Bureau of the Census. While HUD's FY2019 median family income (MFI) estimates are still updates of 2000 Census data, the 2019 HUD update factors are similar to the methodology employeed to generate FY2018 update factors; similarly, FY2019 estimates use 3 year ACS data because more areas are covered by the 3 year estiamtes. In general:

HUD's FY 2019 MFI estimates make more extensive use of ACS data than previous years. All estiamtes are projected forward from 2017 to April 1, 2019, using an annual trend factor of 3.0 percent. Except for minor modifications, HUD continues to use the same area definitions used in FY2006.

Importantly, since the ACS responses where delivered between 2006 and 2008, the impact of the recession which began in 2008 on family incomes is not fully captured by these data.

Due to it's size, $inputname$ does not have published local area 3 year 2017 ACS Survey results.

The step-by-step procedures used to develop FY 2019 estimates for $inputname$ are as follows:

  1. The 2000 Census was used to estimate what are treated as mid-1999 local median family income estimates.

  2. Census 2000 and 2017 American Community Surveys were used to estimate the change in State MFIs for the mid-1999 to end-2017 period. The state income changes for 1999-2017 period were calculated as follows:

    ACS State MFI 2017

    Census State MFI 1999
    =
    9-Year Increase factor for

    ACS Median Family Income
    =ACS State Income Change

    NOTE: For areas not covered by local ACS income estimates, trending for the post-2000 period through the year of the most current ACS data available (2017) was done using changes in ACS state MFI estimates. Therefore, in the FY 2009 HUD MFI estimates, HUD is using direct comparisons between the state estimates from the 2000 Census and the 2017 ACS to calculate state-level changes.

  3. Convert the step 1 median family income estimate to an April 1, 2009 estimate as follows:

    Step 1 median family income
    * Step 2 Local Update Factor
    * 1.03 (3.0% annual trending) 1.25 years
    = FY 2019 Median Family Income estimate

Although HUD is continuing its use of 3-year ACS data in estimation of median family income estimates, HUD is discontinuing its use of the "hold-harmless policy" with respect to Section 8 income limits for FY 2019. For more in depth information, please review review our Federal Register Notice.


The results of the Median Family Income Step by Step Process

$inputname$ Results

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  1. The following are the 2000 Census Median Incomes (as of 1999) for:

    Area 2000 Census Median Income
    ,

  2. The state-level income change from mid-1999 to end-2017 is calculated as follows:
    Area ACS State MFI2017 Year End 2017 Update Factor Census State MFI1999 Result
    , (211.339 / 215.303)
    =
    0.9816
    (*0.9816) /
    =
    $215 /
    =

    =
    %

  3. The FY 2019 median family incom is estimated as follows:
    Area Step 1 Step 2
    Local Update Factor
    Trending
    3.0% for 1.25 years
    FY2019
    Area MFI Estimate
    , 1.031.25
    =
    1.03764
    ( * * 1.03764)
    =
    1.04

  4. In keeping with HUD policy, the MFI Estimate is rounded to the nearest $100:
    Area Unrounded
    FY 2019 MFI Estimate
    Rounded
    FY 2019 MFI Estimate
    , $1.04 $0
    NOTE: Due to differences in the computing platforms used to generate the official FY 2019 MFI estimates, and this web system, the calculated value of 0 is different that the official value of because of rounding.


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