Final FY 2009 Fair Market Rent Documentation System
The Final FY 2009 Hancock County FMRs for All Bedroom Sizes
The following table shows the Final FY 2009 FMRs by unit bedrooms.
Final FY 2009 FMRs By Unit Bedrooms
Efficiency
One-Bedroom
Two-Bedroom
Three-Bedroom
Four-Bedroom
Unadjusted FY 2009 FMR
$455
$456
$546
$656
$679
The remainder of this page provides complete documentation of the development of the
Final FY 2009 Fair Market Rents (FMRs) for
Hancock County, Illinois.
This page provides a summary of how the Final FY 2009 FMRs
were developed and updated starting with the formation of the FY 2009 FMR Areas from the
metropolitan Core-Based Statistical Areas (CBSAs) as established by the Office of Management and Budget
and incorporating newly available 2006 American Community Survey (ACS) Data.
FY 2009 FMRs include information from local Random Digit Dialing (RDD) surveys conducted during the first
quarter of 2008. Aspects of the derivation of Final FY 2009 rents exlusive to FY 2009 are made explicit in the following text.
Aspects unchanged from FY 2008 can be reviewed by clicking on the associated link.
Note that Hancock County, Illinois is assigned
the
State Minimum 2-bedroom FMR for Illinois of $546
and the other FMRs are derived from this base. The following sections
of this page indicate how the unadjusted 2-Bedroom FMR for Hancock County, Illinois
is derived, while the final section shows how the FMRs for other unit sizes are derived from the state minimum base.
Hancock County FMR Area Derivation (RECAP)
Hancock County, IL is a non-metropolitan county under the new metropolitan area definitions used for the
Final FY 2009 FMRs.
Final FY 2009 FMRs
HUD continues its use of ACS data in FY 2009, by building upon the FY 2008 Final FMRs (Hancock County FY 2008 FMR Documentation system).
As in FY 2008, HUD uses 2006 ACS data in four different ways according to how many two-bedroom standard quality and recent mover sample cases are available in the FMR area or its
Core-Based Statistical Area (CBSA). ACS-1 through ACS-4 areas are described in detail here.
In most cases, Final FY 2009 FMRs are based on changes in rents measured by differences in ACS data collected in 2005 and 2006 and updated
CPI rent and utility inflation indexes. Depending on the size of the ACS survey sample, State or Local ACS data is used to update a June 2005-calculated
gross rent from the Final FY 2008 FMRs (Hancock County FY 2008 FMR Documentation system)
to June 2006. In some cases, as described below, the 2006 ACS Survey result is used instead of a 2005 to 2006 updated value. The ACS updated 2006
rent is then adjusted with CPI inflation factors that measure changes from mid-2006 though year end 2007 and 1.25 years of trending to arrive at
Final FY 2009 FMRs. RDD survey results are applied where available and appropriate.
Hancock County, IL is an ACS-3 area.
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Generating a June, 2005 Rent from FY 2008 Final FMRs
In order to apply 2005 to 2006 ACS changes to FMRs (ACS data are assumed to be as of June of their respective survey years), FY 2008 FMRs are first
deflated to mid-2005 values by removing the CPI inflation and trend factors used to update mid-2005 values to April, 2008 inherint in the Final FY
2008 FMRs. (Hancock County FY 2008 FMR Documentation system.)
Rent2005
=
Final FY 2008 Rent (CPI Change2005).5 x (CPI Change2006) x (Trend)
Rent2005
=
$485 (1.0302).5 x (1.0197) x (1.0376)
Rent2005
=
$485 (1.0150) x (1.0197) x (1.0376)
Rent2005
=
$485 (1.0350) x (1.0376)
Rent2005
=
$485 1.0739
Rent2005 = $452
The 2005 to 2006 Update Factor using 2006 ACS Data
As stated earlier, Hancock County, IL is an ACS-3 area.
There are fewer than 200 standard quality 2005 and 2006 ACS cases for Hancock County, IL. Therefore, the 2005-2006 update factor is based on the
change in standard quality 2-bedroom rents between the 2005 and 2006 ACS at the state level.
The update factor for Hancock County, IL is 1.0336,
which is calculated as the ratio of the 2006 Illinois ACS standard quality median rent to the 2005 ACS median standard quality rent for Illinois.
This update factor yields a 2006 Intermediate rent for Hancock County, IL of $452 x 1.0336 =
$467.
NOTE: The update factor shown in the calculation above may not match exactly the 2005 - 2006 update factor shown throughout the demonstration
due to the rounding of Fair Market Rents to whole dollar amounts
The 2006-to-2009 Update Factors
HUD updates the 2006 itermediate rent (as of June 2006) with the appropriate CPI change (local or regional) to establish rents as of December 2007.
HUD then applies additional trending or results of Random Digit Dialing (RDD) surveys to update rents to April, 2009, the mid-point of FY 2009.
The Hancock County, IL has the following 2006-to-2009 Update Factor:
Update Factors used between June 2005 and April 2008
The Final FY 2009 2-Bedroom FMR is simply the product of the
2005 Rent from deflated from FINAL FY 2008 FMRs, the 2005-to-2006 Update Factor and the 2006-to-2009 Update Factors for Hancock County, IL as determined above:
Hancock County, IL Final FY 2009 FMR
= $452 x 1.0336 x 1.0357 x 1.0376
= $467 x 1.0357 x 1.0376
= $484 x 1.0376
= $502
The Final FY 2009 Rents for All Bedroom Sizes
The following table shows the
Final FY 2009 FMRs by unit bedrooms.
The State Minimum-Based FMRs for units
with different numbers of bedrooms are computed from the ratio of the
unadjusted 2005 Revised FMRs (based on 2000 Decennial Census Data) for the different unit sizes to the
unadjusted 2005 2-Bedroom Revised Final FMR. These Rent Ratios are applied to the
the Final FY 2009 State Minimum 2-Bedroom FMR for Illinois of
$546
to determine the Final FY 2009 FMRs
for the different size units.
Click on the links in the table to see how the unadjusted bedroom rents were derived.
The FMRs for unit sizes larger than four bedrooms are calculated by adding 15 percent to the four bedroom FMR, for each extra bedroom.
For example, the FMR for a five bedroom unit is 1.15 times the four bedroom FMR, and the FMR for a six bedroom unit is 1.30 times the four bedroom
FMR. FMRs for single-room occupancy units are 0.75 times the zero bedroom (efficiency) FMR.
