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FY 2016 Fair Market Rent Documentation System

The Final FY 2016 FMRs for All Bedroom Sizes

Final FY 2016 FMRs By Unit Bedrooms
Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
$396 $480 $642 $927 $1,116

Fair Market Rent Calculation Methodology

For the United States Territories of American Samoa, Guam, Northern Mariana Islands, and the U.S. Virgin Islands, HUD calculates Fair Market Rents based on custom tabulations of the 2010 Island Areas Census. These tabulations provide 40th percentile adjusted gross rents for all renters and recent mover renters. The greater of these two values is used as the base rent for FY 2016. This 2010 value is update to 2013 using the change in national 50th percentile adjusted standard quality gross rents from 2010 to 2013 according to the American Community Survey (ACS). This 2013 value is updated to 2014 using a Consumer Price Index-based regional update factor. Finally, the 2015 value is made "as of" 2016 using a "trend factor".

  1. Determine the appropriate base rent for Northern Mariana Islands:

    40th Percentile Adjusted Standard Quality Gross Rents 40th Percentile Adjusted Standard Quality Gross Rents - Recent Movers Base Rent
    $570 $552 $552 Not ≥ $570
    Use base rent of $570

  2. Update the base rent to 2013:

    2010 National 50th Percentile Adjusted Standard Quality Gross Rents 2013 50th Percentile Adjusted Standard Quality Gross Rents Updated Base Rent
    $862 $905 $570 *($905/$862)=$598

  3. The calculation of the relevant CPI Update Factors for Northern Mariana Islands is as follows: HUD updates the 2013 intermediate rent with the ratio of the annual 2014 local or regional CPI to the annual 2013 local or regional CPI to establish rents as of 2014.

    4. Update Factor Type
    CPI Update Factor 1.0267 Region CPI
  4. The calculation of the Trend Factor is as follows: HUD uses the forecasted change in national gross rents from 2014 to 2016. This makes Fair Market Rents "as of" FY2016. For more information on the calculation of the trend factor, please see here.
    Trend Factor
    1.0457

  5. The FY 2016 2-Bedroom Fair Market Rent for Northern Mariana Islands is calculated as follows:

    Updated Base Rent CPI Update Factor Trend Factor FY2016 2 Bedroom Fair Market Rent
    $598* 1.0267* 1.0457= $642

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