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FY 2017 Fair Market Rent Documentation System

The 1-bedroom FMR for is based on the ratio of the rent estimate for 1-bedroom Units to the rent estimate rent estimate for 2 bedroom units. For geographic levels smaller than metropolitan areas, the estimate of 1-bedroom rent is the average of the past three estimates from the most recent American Community Survey 5-Year releases. If an area does not have a reliable local rent estimate, the ratio is based on rent estimates for its larger containing geographic area. This ratio is multiplied by the 2 bedroom FY 2017 Fair Market Rent (FMR) to obtain the 1-bedroom for FY 2017.

The tables below provide the relevant steps for computing the FY 2017 1-bedroom FMR:

  1. Check the Margin of Error Ratios for . If either the 1-bedroom or 2 bedroom Margin of Error Ratio is greater than .5 or if there is not sufficient data to calculate the ratio, then the bedroom ratio is determined using data for the smallest geographic area encompassing for which there is acceptable data.

    ACS Release Adjusted Standard Quality 1-bedroom Estimate of Gross Rent Adjusted Standard Quality 1-bedroom Margin of Error of Gross Rent 1-bedroom Margin of Error Ratio Adjusted Standard Quality 2 Bedroom Estimate of Gross Rent Adjusted Standard Quality 2 Bedroom Margin of Error of Gross Rent 2 Bedroom Margin of Error Ratio
    2014 N/A N/A N/A / N/A =
    N/A
    N/A N/A N/A / N/A =
    N/A
    2013 N/A N/A N/A / N/A =
    N/A
    N/A N/A N/A / N/A =
    N/A
    2012 N/A N/A N/A / N/A =
    N/A
    N/A N/A N/A / N/A =
    N/A
  2. Because only 0 out of 3 local level ratios are reliable, examine the reliability of estimates higher levels of geography until a reliable ratio is found.

    Area ACS Release Adjusted Standard Quality 1-bedroom Estimate of Gross Rent for Adjusted Standard Quality 1-bedroom Margin of Error of Gross Rent for 1-bedroom Margin of Error Ratio Adjusted Standard Quality 1-bedroom Estimate of Gross Rent for Adjusted Standard Quality 1-bedroom Margin of Error of Gross Rent for 2 Bedroom Margin of Error Ratio Ratio

    The preliminary 1-bedroom bedroom ratio is the average of those of $geo_use$ or .

  3. The preliminary 1-bedroom bedroom ratio is checked against the caps and floors for that bedroom size. The floor is set at the 10th percentile of the national distribution of 1-bedroom bedroom ratios (weighted by population), while the cap is set at the 90th percentile of the same distribution.

    Preliminary 1-bedroom Bedroom Ratio National 1-bedroom Floor National 1-bedroom Ceiling Preliminary 1-bedroom Bedroom Ratio
    0.752 0.867 < 0.752
    Use floor ratio of 0.752
  4. Multiply the 1-bedroom Rent Ratio by the 2-Bedroom Fair Market Rent to determine the 1-bedroom Fair Market Rent for .

    Computation of 1-bedroom FMR for
    1-bedroom Rent Ratio FY 2017 2-Bedroom FMR FY 2017 1-bedroom FMR
     *  = 

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