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FY 2014 Median Family Income Documentation System

Median Family Income Calculation Methodology

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

  1. 2007-2011 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 2014.
  2. In areas where the 2011 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 2011 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 2011 ACS data has been selected, the data are set as of December 2012 using the December national CPI value divided by the 2011 National CPI value.
  5. All estimates are then trended from December 2012 to April 2014 (1 ¼ year) with a trending factor of 0.982% per year. The trend factor is calculated as the annual growth rate in the national 1-year estimate of median family income between the 2006 and 2011 American Community Surveys.

The New York, NY HUD Metro FMR Area, has published local area 1-year 2011 ACS Survey results.

The results of the Median Family Income Step by Step Process

New York, NY HUD Metro FMR Area Results

  1. The following are the 2011 American Community Survey 5-year median income estimate and margin of error for New York, NY HUD Metro FMR Area:
    Area ACS2011 5-Year
    Median Income
    ACS2011 5-Year
    Margin of Error
    Ratio Result
    New York, NY HUD Metro FMR Area $62,213 $411 $411 / $62,213
    =
    0.007
    0.007 < 1

    Use ACS2011 New York, NY HUD Metro FMR Area
    Median Income
  2. Since there is an ACS2011 1-year estimate available, a comparison is made in order to determine if the 1-year ACS2011 estimate is different from zero:
    Area ACS2011 1-Year
    Median Income
    ACS2011 1-Year
    Margin of Error
    Ratio Result
    New York, NY HUD Metro FMR Area $60,097 $700 $700 / $60,097
    =
    0.012
    0.012 < 1

    Update to ACS2011 1-Year
    Median Income
  3. The calculation of the CPI Update Factor is as follows:
    Area 2012 December CPI 2011 Annual CPI CPI Update Factor
    New York, NY HUD Metro FMR Area 231.137 224.939 (231.137 / 224.939)
    =
    1.02755
  4. The FY 2014 median family income is estimated as follows:
    Area ACS2011 1-Year Estimate CPI Update Factor Trending
    0.982% for 1.25 years>
    FY 2014
    Area MFI Estimate
    New York, NY HUD Metro FMR Area $60,097 1.02755 1.00981.25
    =
    1.01228
    ($60,097 * 1.02755 * 1.01228)
    =
    $62,511
  5. In keeping with HUD policy, the median family income estimate is rounded to the nearest $100:
    Area Unrounded
    FY 2014 MFI Estimate
    Rounded
    FY 2014 MFI Estimate
    New York, NY HUD Metro FMR Area $62,511 $62,500

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