A local Random Digit Dialing (RDD) survey of recent mover rents was completed for Davidson County, NC in August, 2005. The RDD result has not been used. HUD uses the results of a HUD-conducted local RDD to adjust the FMR if the evaluated rent based on the regular update factor is outside of the 95 percent confidence interval for the forward-trended RDD result.
A monthly change factor is calculated in order to inflate the 2005 Intermediate Rent of $525 to August, 2005 in order to assess the RDD survey conducted in 2005. This is accomplished by taking the 18th root of the normal June, 2005 to December, 2006 update factor of 1.0713 using Regional CPI Information.
monthly change = 1.07131/18
monthly change = 1.07130.0556
monthly change = 1.0038
The 2005 Intermediate Base rent for Davidson County, NC is then inflated to August, 2005 using 2 months of growth for use in comparison to the RDD result of $518. The 2005 inflated intermediate rent is calculated as $525 x 1.00382 = $529. The following table enumerates the evaluation of the RDD Result:
| August, 2005 RDD Evaluation for Davidson County, NC | ||||
|---|---|---|---|---|
| June 2005 Intermediate Rent |
June 2005 to August, 2005 Updated Rent for Comparison |
August, 2005 RDD Result |
August, 2005 RDD Error |
Decision |
| $525 | $529 | $518 | +/-$14 | Is ABS($518-$529)>$14? Is $11>$14? NO RDD Result Unused |
Because the updated 2005 ACS based intermediate rent does not fall outside the 95% confidence interval of the RDD result, the RDD Result is unused.
Therefore, the June 2005 - December 2006 change factor for Davidson County, NC of $562 / $525 = 1.0713
NOTE: Intermediate figures may not sum due to rounding. Also, update factors presented here may not precisely match the "6/2005 to 2006 Update Factor" on the Final FY 2008 FMR summary page due to rounding of FMRs to whole dollar amounts.
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Problems or questions? Contact Peter.B.Kahn@hud.gov.