ACS 2006 Recent Mover Rent Calculation for
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$areaname$ is part of the . The following information provides details on how the 2006 ACS Recent Mover 40th Percentile Rent of was developed for using the publically releasable distributions from the 2006 ACS.

User Note

The recent mover rents that HUD uses in generating FMRs are derived from 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 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 Rents

HUD uses rents for recent mover units to update rents in areas where enough observations exist. "Standard Quality" units and rents are determined by limiting the full ACS 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 Movers add the following criteria: g. Moved with the last 2 years

The 2006 ACS did not included 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 survey questions).

The "public housing" rent cut-off for in 2006 is $323.

A Microsoft Excel file containing the unsummarized versions of the publicly releasable recent mover 2-bedroom rent distributions for is available here.

40th Percentile 2006 ACS Recent Mover Rent -

The following table and calculations demonstrate how the 40th percentile 2006 ACS recent mover rent is determined for using the public distribution of recent mover rents.

The numbers of units with recent mover rents above and below the Public Housing Rent level of $323 for is determined using linear interpolation over the 60 units in the rent range $300 to $324. 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: ($323 - $300) / $25 = 0.9200

Units in the Public Housing Rent Level Interval below the Public Housing Rent Level: 0.9200 x 60 = 55.20

The 40th percentile recent mover rent for is computed by linear interpolation over the 710 units in the rent range $675 to $699. Linear interpolation uses the assupmtion that the 710 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 = .4 x 2,654.80 = 1,061.92

Units below the 40th percentile rent interval = 1,035.00 + 4.80 = 1,039.80

Units in 40th percentile rent interval needed to reach 40 percent of units = 1,061.92 - 1,040 = 22.12

Additional Units as Proportion of Interval = 22.12 / 710 = 0.0312

Dollars Added to Lower Limit of Interval to reach 40th percentile rent = 0.0312 x $25 = $1

40th percentile recent mover rent = $675 + $1 = $676

The difference between the actual 2006 ACS Recent Mover Rent of and the demonstration 2006 ACS Recent Mover Rent of $676 computed here is due to the effects of rounding on the public distribution as described above.