State Minimum Rent Calculation for Alabama

For FY2008, State Minimum rents are based on the lower of the population-weighted median state nonmetropolitan unadjusted 2-bedroom FMR, or the population-weighted median U.S. nonmetropolitan unadjusted 2-bedroom FMR.

State Nonmetropolitan Median FMR

The table below illustrates how the population-weighted median state nonmetropolitan unadjusted 2-bedroom FMR is derived for Alabama. The population-weighted median unadjusted nonmetropolitan 2-bedroom FMR for a state is the 2-bedroom FMR where half of a state's nonmetropolitan population lives in counties with the same or lower 2-bedroom FMRs, and half of the nonmetropolitan population lives in counties with the same or higher 2-bedroom FMRs. The nonmetropolitan population of Alabama is 1,313,847, and half of the nonmetropolitan population of Alabama is 656,924.

In the table below, the unadjusted 2-bedroom FMRs for the nonmetropolitan counties of Alabama are arranged in ascending order, and the cumulative population of the counties at each FMR is listed in the last column. The median unadjusted nonmetropolitan 2-bedroom FMR is the first FMR listed in the table where the cumulative population of counties with that FMR or less first exceeds one-half of the nonmetropolitan population, or 656,924. The row of the table containing the median unadjusted nonmetropolitan 2-bedroom FMR is in bold.

State Minimum Rent Determination

The Alabama State Nonmetropolitan Median FMR is $481. Because it not greater than the U.S. Nonmetropolitan Median FMR of $555, the Alabama State Minimum 2-Bedroom FMR is set at $481.

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