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FY 2020 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. The U.S. Census Bureau's 2013-2017 ACS median family income estimates are used as a basis for calculating HUD's FY2020 MFIs. In areas where the 2017 5-year ACS estimate is smaller than the reported margin of error, the state non-metro estimate of median family income is used.
  2. In areas where there is a 2017 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.
  3. Once the appropriate 2017 ACS data has been selected, an inflation factor based on the CBO forecast of the national CPI is calculated to inflate the estimate from mid-2012 to April, 2020 (or mid FY2020).

$inputname$ does not have published local area 1-year 2017 ACS Survey results.

MFI Step by Step Calculation for $inputname$

  1. The following are the 2017 American Community Survey 5-year median income estimate and margin of error for , :
    Area ACS2017 5-Year
    Median Income
    ACS2017 5-Year
    Margin of Error
    Ratio Result
    , /
    < 1

    Use ACS2017 ,
    Median Income
  2. Since there is no ACS2017 1-year estimate available, the ACS2017 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 Inflation Factor is as follows:
    Area FY2020 CPI 2017 Annual CPI CPI Inflation Factor
    , 241.64 229.599 (241.64 / 229.599)
  4. The FY 2020 median family income is estimated as follows:
    Area ACS2017 5-Year Estimate CPI Inflation Factor FY 2020
    Area MFI Estimate
    , 1.05244 ( * 1.05244)
  5. In keeping with HUD policy, the median family income estimate is rounded to the nearest $100:
    Area Unrounded
    FY 2020 MFI Estimate
    FY 2020 MFI Estimate
    , $1 $0

    NOTE: Due to differences in the computing platforms used to generate the official FY 2020 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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