Census Base Rent Calculation for
Jefferson County, NE

The 2000 Census Base Rent for Jefferson County, NE used by HUD is $418.

This rent is the 40th percentile recent mover rent for the county group defined below because the recent mover sample size for Jefferson County, NE is too small.


FMR Area Geography

Jefferson County, NE has an insufficient 2000 Census sample of recent movers to compute its own recent mover rent. HUD requires a sample of at least 200 recent movers, but Jefferson County, NE has fewer than 200 units in the protected data sample. Therefore, Jefferson County, NE is assigned the recent mover rent for the combination of counties listed below, even though some members of the group may have a sufficient sample size for their own FMR or may be parts of metropolitan areas. Other FMR areas that use the same county group recent mover data are indicated by "*".

Members of the county group: Butler County, NE*; Fillmore County, NE*; Gage County, NE; Jefferson County, NE*; Johnson County, NE*; Nemaha County, NE*; Otoe County, NE*; Pawnee County, NE*; Polk County, NE*; Richardson County, NE*; Saline County, NE; Seward County, NE; Thayer County, NE*; York County, NE.


User Note

In computing 2000 Census Base Rents, HUD actually uses data on rent distributions that are prohibited from public release under Title XIII to protect the confidentiality of respondents. The distributions used in this demonstration are rounded versions of the actual, protected data.

The rounding scheme is as follows:

0, count = 0
1 to 7, count = 4
all other counts are rounded to the nearest 5 (e.g., 10, 15, 20, 25, etc.)

CALCULATIONS USING THE ROUNDED DATA MAY NOT PRODUCE THE SAME RESULT AS CALCULATIONS USING THE PROTECTED DATA. THE DIFFERENCE BETWEEN HUD'S ACTUAL RESULTS AND THOSE DEMONSTRATED HERE IS INVERSELY RELATED TO THE SIZE OF THE FMR AREA. THAT IS, THE LARGER THE AREA, THE CLOSER THE CALCULATION BASED ON THE ROUNDED DATA IS LIKELY TO BE TO THE CENSUS BASE RENT COMPUTED FROM THE PROTECTED DATA.


Recent Mover and Standard Quality Rents

HUD uses rents for recent movers in standard quality units to set the 2000 Census Base Rent. "Standard Quality" units and rents are determined by limiting the full Census sample by including only responses meeting the following criteria:

a. Occupied rental units paying cash rent
b. Specified renter ? on 10 acres or less
c. with full plumbing
d. with full kitchen
e. built before 1999
f. meals not included in rent

"Recent Mover" rents are determined by further limiting the "Standard Quality" sample with the following additional criterion:

g. moved in within the last two years

A Microsoft Excel file containing the unsummarized versions of the publicly releasable recent mover and standard quality 2-bedroom rent distributions for Jefferson County, NE is available here.

The 2000 Census did not include a question that could be used to filter public or assisted housing from the rental distributions, however HUD is required to ensure that FMRs exclude non-market rental housing in their computation. Therefore, HUD excludes all units falling below a specified rent level determined from public housing rents in HUD's program databases as likely to be either assisted housing or otherwise at a below-market rent (perhaps due to quality problems not otherwise captured by the Census questions). The "public housing" rent cut-off in Jefferson County, NE is $257.


40th Percentile Recent Mover Rent

The following table and calculations demonstrate how the 40th percentile Census 2000 recent mover rent is determined for Jefferson County, NE using the public distribution of recent mover rents for the county group specified above.

Portion of Recent Mover Rent Distribution Gross Rent Dollar Range Number of Units Percent of Eligible Distribution Cumulative Percent
Units below interval containing
public housing rent level of $257
$1 to $249 143 Not in Distribution Not in Distribution
Units in interval containing
public housing rent level of $257
$250 to $256 16.80 Not in Distribution Not in Distribution
$257 to $274 43.20 2.1% 2.1%
Units below interval containing
40th percentile recent mover rent of $418
$275 to $399 655 31.6% 33.7%
Units in interval containing
40th percentile recent mover rent of $418
$400 to $424 180 8.7% 42.3%
Units above interval containing
40th percentile recent mover rent of $418
$425 or more 1,196 57.7% 100.0%
Total units Above Public Housing Rent in Recent Mover Rent Distribution   2,074.20    

The numbers of units with recent mover rents above and below the Public Housing Rent level of $257 are determined using linear interpolation over the 60 units in the rent range $250 to $274. Linear interpolation uses the assupmtion that the 60 units' rents are uniformly distributed in the rent range around the Public Housing Rent level. Under this assumption, the proportion of the rent interval ($25) that is below the Public Housing Rent level is the same as the proportion of units with rents in the interval (60) that have rents below the Public Housing Rent level.

Proportion of rent interval below the Public Housing Rent Level: ($257 - $250) / $25 = 0.2800

Units in the Public Housing Rent Level Interval below the Public Housing Rent Level: 0.2800 x 60 = 16.80

The 40th percentile recent mover rent for Jefferson County, NE is computed by linear interpolation over the 180 units in the rent range $400 to $424. Linear interpolation uses the assupmtion that the 180 units' rents are uniformly distributed in the rent range around the 40th percentile. Under this assumption, the proportion of the rent interval ($25) that needs to be added to the lower limit of the interval to reach the 40th percentile rent is the same as the proportion of units in the interval that needs to be added to the units in lower rent intervals to reach 40 percent of units in the distribution.

40 percent of units = 0.4 x 2,074.20 = 829.68

Units below the 40th percentile rent interval = 655.00 + 43.20 = 698.20

Units in 40th percentile rent interval needed to reach 40 percent of units = 829.68 - 698.20 = 131.48

Additional Units as Proportion of Interval = 131.48 / 180.00 = 0.7304

Dollars Added to Lower Limit of Interval to reach 40th percentile rent = 0.7304 x $25 = $18

40th percentile recent mover rent = $400 + $18 = $418


40th Percentile Standard Quality Rent

Before using the recent mover rent as the Census 2000 Base Rent, HUD checks the standard quality rent for the area to ensure that the recent mover rent is high enough to reach the 40th percentile standard quality unit. The recent mover rent may be below the standard quality rent in areas where rental housing markets are particularly stressed such that recent mover rents will not cover the expenses of operating standard quality units.

The following table and calculations demonstrate how the 40th percentile Census 2000 standard quality rent is determined for Jefferson County, NE using the public distribution of standard quality rents for the FMR area.

Portion of Standard Quality Rent Distribution Gross Rent Dollar Range Number of Units Percent of Eligible Distribution Cumulative Percent
Units below interval containing
public housing rent level of $257
$1 to $249 14 Not in Distribution Not in Distribution
Units in interval containing
public housing rent level of $257
$250 to $256 2.80 Not in Distribution Not in Distribution
$257 to $274 7.20 2.8% 2.8%
Units below interval containing
40th percentile standard quality rent of $347
$275 to $324 60 23.4% 26.2%
Units in interval containing
40th percentile standard quality rent of $347
$325 to $349 40 15.6% 41.8%
Units above interval containing
40th percentile standard quality rent of $347
$350 or more 149 58.2% 100.0%
Total Units Above Public Housing Rent in Standard Quality Rent Distribution   256.20    

The numbers of units with standard quality rents above and below the Public Housing Rent level of $257 are determined using linear interpolation over the 10 units in the rent range $250 to $274. Linear interpolation uses the assupmtion that the 10 units' rents are uniformly distributed in the rent range around the Public Housing Rent level. Under this assumption, the proportion of the rent interval ($25) that is below the Public Housing Rent level is the same as the proportion of units with rents in the interval (10) that have rents below the Public Housing Rent level.

Proportion of rent interval below the Public Housing Rent Level: ($257 - $250) / $25 = 0.2800

Units in the Public Housing Rent Level Interval below the Public Housing Rent Level: 0.2800 x 10 = 2.80

The 40th percentile standard quality rent for Jefferson County, NE is computed by linear interpolation over the 40 units in the rent range $325 to $349. Linear interpolation uses the assupmtion that the 40 units' rents are uniformly distributed in the rent range around the 40th percentile. Under this assumption, the proportion of the rent interval ($25) that needs to be added to the lower limit of the interval to reach the 40th percentile rent is the same as the proportion of units in the interval that needs to be added to the units in lower rent intervals to reach 40 percent of units in the distribution.

40 percent of units = 0.4 x 256.20 = 102.48

Units below the 40th percentile rent interval = 60.00 + 7.20 = 67.20

Units in 40th percentile rent interval needed to reach 40 percent of units = 102.48 - 67 = 35.28

Additional Units as Proportion of Interval = 35.28 / 40 = 0.8820

Dollars Added to Lower Limit of Interval to reach 40th percentile rent = 0.8820 x $25 = $22

40th percentile standard quality rent = $325 + $22 = $347

The difference between the actual 2000 Census Standard Quality Rent of $409 and the demonstration 2000 Census Standard Quality Rent of $347 computed here is due to the effects of rounding on the public distribution as described above.

Since the standard quality rent of $409 is not higher than the recent mover rent of $418, the recent mover rent of $418 is the 2000 Census Base Rent for Jefferson County, NE.



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Problems or questions? Contact Peter.B.Kahn@hud.gov.