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FY 2014 Fair Market Rent Documentation System

The Final FY 2014 Northwest Piscataquis UT FMRs for All Bedroom Sizes

The following table shows the Final FY 2014 FMRs by unit bedrooms for Northwest Piscataquis UT.

Final FY 2014 FMRs By Unit Bedrooms
Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
$486 $548 $650 $843 $891

FY 2014 FMR areas continue to use the revised Office of Management and Budget (OMB) area definitions that were first issued in 2003 along with HUD defined Metropolitan areas (HMFAs) as described in the FY2011 FMR documentation, which can be found at (Northwest Piscataquis UT FY2011 FMR Documentation system). No changes have been made to these OMB-defined areas since the publication of Final FY2011 FMRs

Fair Market Rent Calculation Methodology

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Fair Market Rents for metropolitan areas and non-metropolitan FMR areas are developed as follows:

  1. 2007-2011 5-year American Community Survey (ACS) estimates of 2-bedroom adjusted standard quality gross rents calculated for each FMR area are used as the new basis for FY2014.

    In areas where the 2007-2011 5-year ACS 2-bedroom adjusted standard quality gross rent estimate is less than its respective margin of error, the state non-metro estimate of 2-bedroom adjusted standard quality gross rent is used.

  2. HUD calculates a recent mover adjustment factor by comparing a 2011 1-year 40th percentile recent mover 2-bedrooom rent to the 2007-2011 5-year 40th percentile adjusted standard quality gross rent. If either the recent mover and non-recent mover rent estimates has a margin of error that includes zero, HUD uses the recent mover adjustment for a larger geography. For metropolitan areas, the order of geographies examined is: FMR Area, Entire Metropolitan Area (for Metropolitan Sub-Areas), State Metropolitan Portion, Entire State, and Entire US; for non-metropolitan areas, the order of geographies examined is: FMR Area, State Non-Metropolitan Portion, Entire State, and Entire US. The recent mover adjustment factor is floored at one.
  3. HUD calculates the appropriate recent mover adjustment factor between the 5-year data and the 1-year data and applies this to the 5-year base rent estimate.
  4. Rents are calculated as of December 2012 using the relevant (regional or local) change in CPI from annual 2011 to annual 2012 as well as the change in national CPI from annual 2012 to December 2012.
  5. All estimates are then trended from December 2012 to April 2014 (15 months) with a trending factor of 2.68 percent per year.
  6. The FY2014 FMR is then calculated by multiplying the base rent, the recent mover adjustment factor, the CPI adjustment, and the trend factor.
  7. FY2014 FMRs are then compared to a state minimum rent, and any area whose preliminary FMR falls below this value is raised to the level of the state minimum.

The results of the Fair Market Rent Step-by-Step Process

  1. The following are the 2011 American Community Survey 5-year 2-Bedroom Adjusted Standard Quality Gross Rent estimate and margin of error for Piscataquis County, ME. The following calculations are based on data for the entirety of Piscataquis County, ME.
    Area ACS2011 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent ACS2011 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent Margin of Error Ratio Result
    Piscataquis County, ME $578 $22 $22 / $578=0.038 0.038 < 1 Use ACS2011 5-Year Piscataquis County, ME 2-Bedroom Adjusted Standard Quality Gross Rent
    Since the ACS2011 Margin of Error Ratio is less than 1, the ACS2011 Piscataquis County, ME value is used for the estimate of 2-Bedroom Adjusted Standard Quality Gross Rent:
    Area ACS2011 Rent
    Piscataquis County, ME $578
  2. A recent mover adjustment factor is applied based on the smallest area of geography which contains Piscataquis County, ME and has an ACS2011 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than 1.
    Area ACS2011 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent ACS2011 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Margin of Error Ratio Result
    Piscataquis County, ME N/A N/A N/A No ACS2011 1-year Adjusted Standard Quality Recent-Mover estimate produced for Piscataquis County, ME
    Maine Non-Metro $693 $36 $36 / $693=0.052 0.052 < 1 Use ACS2011 1-Year Maine Non-Metro 2-BedroomAdjusted Standard QualityRecent-Mover Gross Rent

    The smallest area of geography which contains Piscataquis County, ME and has an ACS2011 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than 1 is the non-metropolitan portion of Maine.

  3. The calculation of the relevant Recent-Mover Adjustment Factor for Piscataquis County, ME is as follows:
    ACS2011 5-Year Area ACS2011 5-Year 40th Percentile 2-Bedroom Adjusted Standard Quality Gross Rent ACS2011 1-Year 40th Percentile 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent
    Maine Non-Metro $649 $693
    Area Ratio Recent-Mover Adjustment Factor
    Maine Non-Metro $693 / $649
    =1.0678    		 1.0678 > 1.0 Use calculated Recent-Mover Adjustment Factor of 1.0678
  4. The calculation of the relevant CPI Update Factors for Piscataquis County, ME is as follows: HUD updates the 2011 intermediate rent with the ratio of the annual 2012 local or regional CPI to the annual 2011 local or regional CPI to establish rents as of 2012. HUD then updates this 2012 annual CPI with the ratio of the December 2012 national CPI to the annual 2011 national CPI to establish rents as of December 2012.
    Update Factor Type
    CPI Update Factor 1.0195 Regional CPI
  5. The calculation of the Trend Factor is as follows: HUD applies an additional 15 months of trending to update rents to April, 2014, the mid-point of FY 2014. This trend factor is determined by taking the average annual growth rate in the national 1-Year Median Gross Rent between the 2007 and 2011 American Community Surveys.
    ACS2007U.S. 1-Year Median Gross Rent ACS2011U.S. 1-Year Median Gross Rent Average Annual Change in U.S. 1-Year Median Gross Rent Trend Factor 2.68% for 1.25 years
    $763 $871 ($871 / $763) 1/5=(1.1415) 1/5=1.0268 1.02681.25=1.03365
  6. The FY 2014 2-Bedroom Fair Market Rent for Piscataquis County, ME is calculated as follows:
    Area ACS2011 5-Year Estimate Recent-Mover Adjustment Factor Annual 2011 to December 2012 CPI Adjustment Trending 2.68% for 1.25 years FY 2014 2-Bedroom FMR
    Piscataquis County, ME $578 1.0678 1.0195 1.0336 $578 * 1.0678 * 1.0195 * 1.0336=$650
  7. In keeping with HUD policy, the preliminary FY 2014 FMR is checked to ensure that is does not fall below the state minimum for Maine:
    Area Preliminary FY 20142-Bedroom FMR FY 2014 Maine State Minimum Final FY 20142-Bedroom FMR
    Piscataquis County, ME $650 $637 $650 ≥ $637 Use Piscataquis County, ME FMR of $650

Final FY 2014 Rents for All Bedroom Sizes for Piscataquis County, ME

The following table shows the Final FY 2014 FMRs by bedroom sizes. The FMRs for units with different numbers of bedrooms are computed from the ratio of the 40th percentile adjusted standard quality gross rent for the different unit sizes to the 40th percentile adjusted standard quality 2-Bedroom gross rent from the 2006-2010 5-year ACS. These Rent Ratios are applied to the Final FY 2014 2-Bedroom FMR to determine the Final FY 2014 FMRs for the different size units.

Click on the links in the table to see how the bedroom rents were derived.

Final FY 2014 FMRs By Unit Bedrooms
  Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
Final FY 2014 FMR $486 $548 $650 $843 $891

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.

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Prepared by the Economic and Market Analysis Division, HUD. Technical Problems or questions? Contact Us.