FY 2016 Income Limits Documentation System

Median Family Income Calculation Methodology

Estimates of median family income for metropolitan and non-metropolitan areas are developed as follows:

  1. 2009-2013 ACS estimates of median family income calculated by the Census Bureau for HUD's Fair Market Rent and Income Limit areas are used as the basis for FY 2016.
  2. In areas where the 2013 5-year ACS estimate is smaller than the reported margin of error, the state non-metro estimate of median family income is used.
  3. In areas where there is a 2013 1-year ACS estimate of median family income that exceeds its margin of error, the 1-year ACS estimate becomes the basis for median family income.
  4. Once the appropriate 2013 ACS data has been selected, the data are set as of December 2014 using the December national CPI value divided by the 2013 National CPI value.
  5. All estimates are then trended from December 2014 to April 2016 (1 year) with a trending factor of 1.66% per year. The trend factor is calculated as the annual growth rate in the national 1-year estimate of median family income between the 2008 and 2013 American Community Surveys.

$inputname$ does not have published local area 1-year 2013 ACS Survey results.

The results of the Median Family Income Step by Step Process

$inputname$ Results

  1. The following are the 2013 American Community Survey 5-year median income estimate and margin of error for , :
    Area ACS2013 5-Year
    Median Income
    ACS2013 5-Year
    Margin of Error
    Ratio Result
    , /
    < 1

    Use ACS2013 ,
    Median Income
  2. Since there is no ACS2013 1-year estimate available, the ACS2013 5-year value is used for the estimate of median income and the ACS update factor is set to 1.0
  3. The calculation of the CPI Update Factor is as follows:
    Area 2014 December CPI 2013 Annual CPI CPI Update Factor
    , 227.033 218.056 (227.033 / 218.056)
  4. The FY 2016 median family income is estimated as follows:
    Area ACS2013 5-Year Estimate CPI Update Factor Trending
    1.66% for 1.25 years
    FY 2016
    Area MFI Estimate
    , 1.04117 1.01661.25
    ( * 1.04117 * 1.02074)
  5. In keeping with HUD policy, the median family income estimate is rounded to the nearest $100:
    Area Unrounded
    FY 2016 MFI Estimate
    FY 2016 MFI Estimate
    , $218.06 $200

    NOTE: Due to differences in the computing platforms used to generate the official FY 2016 MFI estimates, and this web system, the calculated value of $200 is different that the official value of because of rounding.


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