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FY 2018 Fair Market Rent Documentation System

The FY 2018 FMRs for All Bedroom Sizes

Final FY 2018 FMRs By Unit Bedrooms
Year Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
FY 2018 FMR $475 $560 $745 $1,084 $1,159
FY 2017 FMR $465 $551 $733 $1,067 $1,163

Pend Oreille County, Washington is part of the Pend Oreille County, WA HUD Metro FMR Area, which consists of the following counties: Pend Oreille County, WA. All information here applies to the entirety of the Pend Oreille County, WA HUD Metro FMR Area.

Fair Market Rent Calculation Methodology

Show/Hide Methodology Narrative

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

  1. 2011-2015 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 FY2018 provided the estimate is statistically reliable. For FY2018, the test for reliability is whether the margin of error for the estimate is less than 50% of the estimate itself and whether the ACS estimate is based on at least 100 survey cases. HUD does not receive the exact number of survey cases, but rather a categorical variable known as the count indicator indicating a range of cases. An estimate based on at least 100 cases corresponds to a count indicator of 4 or higher.

    If an area does not have a reliable 2011-2015 5-year, HUD checks whether the area has had at least minimally reliable estimate in any of the past 3 years, or estimates that meet the 50% margin of error test described above. If so, the FY2018 base rent is the average of the inflated ACS estimates.

    If an area has not had a minimally reliable estimate in the past 3 years, the estimate State for the area's corresponding metropolitan area (if applicable) or State non-metropolitan area is used as the basis for FY2018.

  2. HUD calculates a recent mover adjustment factor by comparing a 2015 1-year 40th percentile recent mover 2-bedrooom rent to the 2011-2015 5-year 40th percentile adjusted standard quality gross rent. If either the recent mover and non-recent mover rent estimates are not reliable, 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 2016 using the relevant (regional or local) change in gross rent Consumer Price Index (CPI) from annual 2015 to annual 2016.

  5. All estimates are then inflated from 2016 to FY2018 using a trend factor based on the forecast of gross rent changes through FY2018.

  6. FY2018 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.

  7. FY2018 FMRs may not be less than 90% of FY2017 FMRs.

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

  1. The following are the 2015 American Community Survey 5-year 2-Bedroom Adjusted Standard Quality Gross Rent estimate and margin of error for Pend Oreille County, WA HUD Metro FMR Area.
    Area ACS2015 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent ACS2015 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent Margin of Error Ratio Sample Size Category Result
    Pend Oreille County, WA HUD Metro FMR Area $666 $60 $60 / $666=0.09 1 1 < 4
    Check for reliable local ACS estimates from previous years
    ACS2015 5-year Estimate ACS2015 5-year Error ACS2015 5-year Estimate Minimally Reliable? ACS2014 5-year Estimate ACS2014 5-year Error ACS2014 5-year Estimate Minimally Reliable? ACS2013 5-year Estimate ACS2013 5-year Error ACS2013 5-year Estimate Minimally Reliable?
    $666 $60 $60 / $666=0.09 $667 $119 $119 / $667=0.178 $646 $54 $54 / $646=0.084
    Since 3 of 3 ACS estimates are minimally reliable, the base rent is the average of those estimates, with each estimate first inflated to 2015 dollars (not shown).
    Area FY2018 Base Rent
    Pend Oreille County, WA HUD Metro FMR Area $676
  2. A recent mover adjustment factor is applied based on the smallest area of geography which contains Pend Oreille County, WA HUD Metro FMR Area and has an ACS2015 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than .5.
    Area ACS2015 1-Year Adjusted Standard Quality Recent-Mover Gross Rent ACS2015 1-Year Adjusted Standard Quality Recent-Mover Gross Rent Margin of Error Ratio Sample Size Category Result
    Pend Oreille County, WA HUD Metro FMR Area – 2 Bedroom N/A N/A N/A N/A No ACS2015 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Produced For Pend Oreille County, WA HUD Metro FMR Area
    Pend Oreille County, WA HUD Metro FMR Area – All Bedroom N/A N/A N/A N/A No ACS2015 1-Year All Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Produced For Pend Oreille County, WA HUD Metro FMR Area
    Spokane-Spokane Valley, WA MSA – 2 Bedroom $751 $34 0.045 5 0.045 < .5
    5 ≥ 4
    Use ACS2015 1-Year Spokane-Spokane Valley, WA MSA 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent

    The smallest area of geography which contains Pend Oreille County, WA HUD Metro FMR Area and has an ACS2015 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than .5 and with a sufficient number of sample cases is Spokane-Spokane Valley, WA MSA.

  3. The calculation of the relevant Recent-Mover Adjustment Factor for Pend Oreille County, WA HUD Metro FMR Area is as follows:
    ACS2015 5-Year Area ACS2015 5-Year 40th Percentile Adjusted Standard Quality Gross Rent ACS2015 1-Year 40th Percentile Adjusted Standard Quality Recent-Mover Gross Rent
    Spokane-Spokane Valley, WA MSA – 2 Bedroom $744 $751
    Area Ratio Recent-Mover Adjustment Factor
    Pend Oreille County, WA HUD Metro FMR Area $751 / $744
    =1.009    		 1.009 ≥ 1.0 Use calculated Recent-Mover Adjustment Factor of 1.009
  4. The calculation of the relevant CPI Update Factors for Pend Oreille County, WA HUD Metro FMR Area is as follows: HUD updates the 2015 intermediate rent with the ratio of the annual 2016 local or regional CPI to the annual 2015 local or regional CPI to establish rents as of 2016.
    Update Factor Type
    CPI Update Factor 1.0311 Region CPI
  5. The calculation of the Trend Factor is as follows: HUD forecasts the change in national gross rents from 2016 to 2018. This makes Fair Market Rents "as of" FY2018.
    National Trend Factor
    1.0589
  6. The FY 2018 2-Bedroom Fair Market Rent for Pend Oreille County, WA HUD Metro FMR Area is calculated as follows:
    Area ACS2015 5-Year Estimate Recent-Mover Adjustment Factor Annual 2015 to 2016 CPI Adjustment Trending 1.0589 to FY2018 FY 2018 2-Bedroom FMR
    Pend Oreille County, WA HUD Metro FMR Area $676 1.009 1.0311 1.0589 $676 * 1.009 * 1.0311 * 1.0589=$745

  7. In keeping with HUD policy, the preliminary FY 2018 FMR is checked to ensure that is does not fall below the state minimum.

    Area Preliminary FY2018 2-Bedroom FMR FY 2018 Washington State Minimum Final FY2018 2-Bedroom FMR
    Pend Oreille County, WA HUD Metro FMR Area $745 $697 $745 ≥ $697 Use Pend Oreille County, WA HUD Metro FMR Area FMR of $745

  8. Bedroom ratios are applied to calculate FMRs for unit sizes other than two bedrooms.

    Click on the links in the table to see how the bedroom ratios are calculated.

    FY 2018 FMRs By Unit Bedrooms
      Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
    FY 2018 FMR $475 $560 $745 $1,084 $1,159

  9. The FY2018 FMR must not be below 90% of the FY2017 FMR.

      Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
    FY2017 FMR $465 $551 $733 $1,067 $1,163
    FY2017 floor $419 $496 $660 $960 $1,047
    FY 2018 FMR $475 $560 $745 $1,084 $1,159
    Use FY2017 floor for FY2018? No No No No No

Final FY2018 Rents for All Bedroom Sizes for Pend Oreille County, WA HUD Metro FMR Area

The following table shows the Final FY 2018 FMRs by bedroom sizes.

Final FY 2018 FMRs By Unit Bedrooms
  Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
Final FY 2018 FMR $475 $560 $745 $1,084 $1,159

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.

Permanent link to this page: http://www.huduser.gov/portal/data sets/fmr/fmrs/FY2018_code/2018summary.odn?&year=2018&fmrtype=Final&selection_type=county&fips=5305199999

Other HUD Metro FMR Areas in the Same MSA

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