Final FY 2011 Fair Market Rent Documentation System
The Final FY 2011 Hot Springs County FMRs for All Bedroom Sizes
The following table shows the Final FY 2011 FMRs by unit bedrooms.
Final FY 2011 FMRs By Unit Bedrooms
Efficiency
One-Bedroom
Two-Bedroom
Three-Bedroom
Four-Bedroom
Final FY 2011 FMR
$502
$525
$628
$820
$981
The remainder of this page provides complete documentation of the development of the
Final FY 2011 Fair Market Rents (FMRs) for
Hot Springs County, Wyoming.
This page provides a summary and details of how the Final FY 2011 FMRs
were developed and updated starting with the formation of the FY 2011 FMR Areas from the
metropolitan Core-Based Statistical Areas (CBSAs) as established by the Office of Management and Budget
and incorporating newly available 2008 one and three year American Community Survey (ACS) Data.
FY 2011 FMRs include information from local Random Digit Dialing (RDD) surveys conducted through
2009. Aspects of the derivation of Final FY 2011 rents exclusive to FY 2011 are made explicit in the following text.
Aspects unchanged from FY 2010 can be reviewed by clicking on the associated link.
The following defines a summary of the steps taken to generate the Final FY 2011 FMR:
Hot Springs County, WY Final FY 2011 FMR Calculation Summary
Process Step
Step Result
1. Begin with Final FY 2010 2 Bedroom FMR
$645
2. Remove Trending and CPI Updates from Final FY 2010 2 Bedroom FMR
HUD continues its use of ACS data in FY 2011, by building upon the FY 2010 Final FMRs (Hot Springs County FY 2010 FMR Documentation system).
As in FY 2010, HUD uses 2008 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 2011 FMRs are based on changes in rents measured by differences in ACS data collected in either 2006 or 2007 and 2008 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 2007-calculated
gross rent from the Final FY 2010 FMRs (Hot Springs County FY 2010 FMR Documentation system)
to June 2008. In some cases, as described below, the 2008 ACS Survey result is used instead of the updated value. The ACS updated 2008
rent is then adjusted with CPI inflation factors that measure changes from mid-2008 though year end 2009 and 1.25 years of trending to arrive at
Final FY 2011 FMRs. RDD survey results are applied where available and appropriate.
Hot Springs County, WY is an ACS-3 area.
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Similar to the calculation methodology used in FY2010, for FY2011 Final FMRs, HUD continues to use a statistical test to determine
if the change in the survey estimates from separate surveys are statistically significant.
This test is described and completed below.
In order to apply changes in ACS surveys to FMRs (ACS data are assumed to be as of June of their respective survey years), FY 2010 FMRs are first
deflated to mid-2007 values by removing the CPI inflation and trend factors used to update mid-2007 values to April, 2010 inherent in the Final FY
2010 FMRs.(Hot Springs County FY 2010 FMR Documentation system.)
As stated earlier, Hot Springs County, WY is an ACS-3 area.
There are fewer than 200 standard quality 2007 and 2008 ACS cases for Hot Springs County, WY. Therefore, the update factor is based on the
change in standard quality 2-bedroom rents between the 2007 and 2008 ACS at the state level.
The update factor for Hot Springs County, WY is 1.0000,
because there was no statistically significant difference between the 2007 and 2008 ACS standard quality 2-bedroom rents. Please click
on the update factor for more details behind the statistical significance test.
This update factor yields a 2008 Intermediate rent for Hot Springs County, WY of $586 x 1.0000 =
$586.
NOTE: The update factor shown in the calculation above may not match exactly the 2008 factor shown throughout the demonstration
due to the rounding of Fair Market Rents to whole dollar amounts
HUD updates the 2008 intermediate rent (as of June 2008) with the appropriate CPI change (local or regional) to establish rents as of December 2009.
HUD then applies additional trending or results of Random Digit Dialing (RDD) surveys to update rents to April, 2011, the mid-point of FY 2011.
The Hot Springs County, WY has the following 2008-to-2011 Update Factor:
Update Factors used between June 2008 and April 2011
The Final FY 2011 2-Bedroom FMR is simply the product of the
2007 Rent from deflated from final FY 2010 FMRs, the 2008 update factor and the 2008-to-2011 Update Factors for Hot Springs County, WY as determined above:
The following table shows the
Final FY 2011 FMRs by unit bedrooms.
The FMRs for units
with different numbers of bedrooms are computed from the ratio of the
2005 Revised Final FMRs (based on 2000 Decennial Census Data) for the different unit sizes to the
2005 2-Bedroom Revised Final FMRs. These Rent Ratios are applied to the
Final FY 2011 2-Bedroom FMR
to determine the Final FY 2011 FMRs
for the different size units.
Click on the links in the table to see how the 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.
or
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