The 3-bedroom FMR for Coles County, IL is based on the ratio of the rent estimate for 3-bedroom Units to the rent estimate rent estimate for 2 bedroom units. For geographic levels smaller than metropolitan areas, the estimate of 3-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 2018 Fair Market Rent (FMR) to obtain the 3-bedroom for FY 2018.
The tables below provide the relevant steps for computing the FY 2018 3-bedroom FMR:
Check the Margin of Error Ratios for Coles County, IL. If either the 3-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 Coles County, IL for which there is acceptable data.
| ACS Release | Adjusted Standard Quality 3-bedroom Estimate of Gross Rent | Adjusted Standard Quality 3-bedroom Margin of Error of Gross Rent | 3-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 |
|---|---|---|---|---|---|---|
| 2015 | $805 | $96 | $96 / $805 = 0.12 |
$632 | $22 | $22 / $632 = 0.03 |
| 2014 | $791 | $85 | $85 / $791 = 0.11 |
$621 | $28 | $28 / $621 = 0.05 |
| 2013 | $803 | $67 | $67 / $803 = 0.08 |
$607 | $35 | $35 / $607 = 0.06 |
Because 3 out of 3 local level ratios are reliable, their average will be used as the 3-bedroom ratio for FY 2018.
| ACS2013 Ratio | ACS2014 Ratio | ACS2015 Ratio | Average of Reliable Ratios (Preliminary 3-bedroom Bedroom Ratio) |
|---|---|---|---|
|
$803/ $607 = 1.323 |
$791/ $621 = 1.274 |
$805/ $632 = 1.274 |
1.290 |
The preliminary 3-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 3-bedroom bedroom ratios (weighted by population), while the cap is set at the 90th percentile of the same distribution.
| Coles County, IL Preliminary 3-bedroom Bedroom Ratio | National 3-bedroom Floor | National 3-bedroom Ceiling | Coles County, IL Preliminary 3-bedroom Bedroom Ratio |
|---|---|---|---|
| 1.290 | 1.153 | 1.338 | 1.290 is between floor and ceiling ratios. |
3-bedroom ratios receive a bonus of 8.7%:
| 3-bedroom Bonus Application |
|---|
| 1.290 * 1.087 = 1.402 |
In order to ensure that 3-bedroom Fair Market Rents are not greater than the corresponding 4 Bedroom Fair Market Rent, the 3-bedroom Rent Ratio must be at least 0.005 less than the corresponding 4 Bedroom Rent Ratio.
| Coles County, IL Preliminary 3-bedroom Bedroom Ratio | Coles County, IL 4 Bedroom Ratio | Comparison |
|---|---|---|
| 1.402 | 1.528 | 1.402 ≤ (1.528 - 0.005) 1.402 ≤ 1.523 Use 1.402 |
Multiply the 3-bedroom Rent Ratio by the 2-Bedroom Fair Market Rent to determine the 3-bedroom Fair Market Rent for Coles County, IL.
| Computation of 3-bedroom FMR for Coles County, IL | ||
|---|---|---|
| 3-bedroom Rent Ratio | FY 2018 2-Bedroom FMR | FY 2018 3-bedroom FMR |
| 1.402 | $721 | $721 * 1.402 = $1,011 |
NOTE: The FMR shown here may not be the final FMR for FY 2018 as the the FMR is subject to a floor based on last year's FMR value.
Prepared by the Economic and Market Analysis Division, HUD. Technical Problems or questions? Contact Us.