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FY 2025 Fair Market Rent Documentation System

The FY 2025 Becker County, MN FMRs for All Bedroom Sizes

FINAL FY 2025 & Final FY 2024 FMRs By Unit Bedrooms
Year Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
FY 2025 FMR $669 $750 $976 $1,305 $1,419
FY 2024 FMR $687 $801 $1,014 $1,361 $1,505

Becker County, MN is a non-metropolitan county.

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. Calculate the Base Rent: HUD uses 2018-2022 5-year American Community Survey (ACS) estimates of 2-bedroom adjusted standard quality gross rents calculated for each FMR area as the new basis for FY2025, provided the estimate is statistically reliable. For FY2025, 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 2018-2022 5-year estimate, HUD checks whether the area has had at least 2 minimally reliable estimates in the past 3 years, or estimates that meet the 50% margin of error test described above. If so, the FY2025 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, HUD uses the estimate for the area's corresponding metropolitan area (if applicable) or State non-metropolitan area as the basis for FY2025.

  2. Calculate the Basis for Recent Mover Adjustment Factor: HUD calculates a recent mover adjustment factor by comparing an ACS 2022 1-year 40th percentile recent mover 2-bedroom rent to the ACS 2018-2022 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.

    HUD first examines recent movers who have moved within the current year of the ACS survey. If there is no reliable local area estimate, HUD then examines those who have moved into their residence within the current year or preceding year of the ACS survey. Upon determining a reliable recent mover estimate, HUD calculates the appropriate recent mover adjustment factor between the 5-year data and the 1-year data.

  3. Adjust for Inflation: In order to calculate rents that are "as of" 2023, HUD applies a gross rent inflation adjustment factor using data from commercial rent data sources and the Consumer Price Index. HUD uses a local measure of private rent inflation for markets that are covered by at least three of the six available sources of private rent data. HUD combines this local measure of rent inflation with either the local metropolitan area CPI rent of primary residence for the 23 areas where such data exist, or the regional CPI rent in areas without a local index.

    For areas without at least three of the six private rent data sources available, HUD uses a regional average of private rent inflation factors alongside the regional CPI rent of primary residence. HUD constructs the regional average by taking the rental unit weighted average of the change in rents of each area in a region that does have private rent data coverage. HUD averages the private and CPI shelter rent data with the year-to-year change in the CPI housing fuels and utilities index for the area in order to make the resulting inflation measure reflective of gross rents.

    The private and CPI gross rent update factors are then combined using a weighting scheme which controls the national weighted average of the private and CPI gross rent factors to the national change in the ACS recent mover gross rent. The resulting weights assigned are as follows: W2023 = 0.7499 assigned to the private gross rent factor and (1-W2023) = 0.2501 assigned to the CPI gross rent factor.

  4. Calculate the Trend Factor: To further inflate rents from CY2023 to FY2025, HUD uses a "trend factor" based on the forecast of CPI gross rent changes through FY2025.

  5. Multiply the Factors: HUD multiplies the base rent by the recent mover factor, the gross rent inflation factor, and the trend factor to produce a rent that is "as of" the current fiscal year.

  6. Compare to the State minimum: FY2025 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. Calculate Bedroom Ratios: HUD calculates "bedroom ratios" and multiplies these by the two-bedroom rent to produce preliminary FMRs for unit sizes other than two bedrooms.

  8. Compare to Last Year's FMR: FY2025 FMRs may not be less than 90% of FY2024 FMRs. Therefore, HUD applies "floors" based on the prior year's FMRs.

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

  1. Base Rent Calculation
    The following are the 2022 American Community Survey 5-year 2-Bedroom Adjusted Standard Quality Gross Rent estimates and margins of error for Becker County, MN.
    Area ACS2022 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent ACS2022 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent Margin of Error Ratio Sample Size Category Result
    Becker County, MN $848 $50 $50 / $848=0.05896 4 0.05896 < .5
    4 ≥ 4
    Use ACS2022 5-Year Becker County, MN 2-Bedroom Adjusted Standard Quality Gross Rent
    Since the ACS2022 Margin of Error Ratio is less than .5, HUD uses the ACS2022 Becker County, MN value for the estimate of 2-Bedroom Adjusted Standard Quality Gross Rent (Base Rent).
    Area FY2025 Base Rent
    Becker County, MN $848
  2. Recent Mover Adjustment Factor Calculation
    A recent mover adjustment factor is applied based on the smallest area of geography containing Becker County, MN that has an ACS2022 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than .5 and a sufficient number of sample cases.
    Area ACS2022 1-Year Adjusted Standard Quality Recent-Mover Gross Rent ACS2022 1-Year Adjusted Standard Quality Recent-Mover Gross Rent Margin of Error Ratio Sample Size Category Result
    Becker County, MN – ACS 1-year recent mover 2 Bedroom N/A N/A N/A N/A No ACS2022 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Produced For Becker County, MN
    Becker County, MN – ACS 1-year recent mover All Bedroom N/A N/A N/A N/A No ACS2022 1-Year All Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Produced For Becker County, MN
    Becker County, MN – ACS 2-year recent mover 2 Bedroom N/A N/A N/A N/A No ACS2022 1-Year 2 Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Produced For Becker County, MN
    Becker County, MN – ACS 2-year recent mover All Bedroom N/A N/A N/A N/A No ACS2022 1-Year All Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Produced For Becker County, MN
    Minnesota Non-metropolitan Portion – 2 Bedroom $834 $40 0.048 6 0.048 < .5
    6 ≥ 4
    Use ACS2022 1-Year Non-metropolitan Portion 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent
    The calculation of the relevant Recent-Mover Adjustment Factor for Becker County, MN is as follows:
    ACS2022 5-Year Area ACS2022 5-Year 40th Percentile Adjusted Standard Quality Gross Rent ACS2022 1-Year 40th Percentile Adjusted Standard Quality Recent-Mover Gross Rent
    Minnesota Non-metropolitan Portion – 2 Bedroom $820 $834
    Area Ratio Recent-Mover Adjustment Factor
    Becker County, MN $834 / $820
    =1.017    		 1.0171 ≥ 1.0 Use calculated Recent-Mover Adjustment Factor of 1.0171

  3. Inflation Adjustment Factor Calculation
    A gross rent inflation adjustment factor is applied based on a weighted average of a private source gross rent inflation factor and a Consumer Price Index gross rent inflation factor. Since Becker County, MN is not covered by at least 3 private data sources, a region-based private rent factor is applied. Furthermore, since Becker County, MN is not covered by a local-CPI rent area, a Region-based CPI gross rent factor is applied.

    Components of 2023 Inflation Adjustment Factor for Becker County, MN
    R2023= Shelter Rent Change, 2022 to 2023 U2023 = CPI Annual Utilities Change, 2022 to 2023 C2023 = ACS Utility Cost as a Percent of Gross Rent Gross Rent Inflation Factor Calculation = (R2023 x (1-C2023) + U2023 x C2023) Inflation Factor Type
    P2023= Private Inflation Factor 1.05661 0.98918 0.19358
    		 (1.05661 * 0.80642) + (0.989185 * 0.1936)=
    1.04356    		 Region
    CPI2023= CPI Inflation Factor 1.07588 0.98918 0.1936
    		 (1.07588 * 0.8064) + (0.98918 * 0.1936)=
    1.0591    		 Region

    The 2023 Gross Rent Inflation Factor for Becker County, MN is computed as follows:

    = CPI2023 x (1-W2023) + P2023 x W2023

    = (1.0591 x 0.2501) + (1.04356 x 0.7499)

    = (0.264881) + (0.782566)

    = 1.04744

  4. Trend Factor Adjustment
    The calculation of the Trend Factor is as follows: HUD forecasts the change in gross rents from 2023 to 2025 for each CPI area and Census Region. This makes Fair Market Rents "as of" FY2025.
    Trend Factor Trend Factor Type
    Trend Factor 1.08013 Region
  5. Combination of Factors
    The FY 2025 2-Bedroom Fair Market Rent for Becker County, MN is calculated as follows:
    Area Base Rent Recent-Mover Adjustment Factor Annual 2022 to 2023 Gross Rent Inflation Adjustment Trending 2023 to FY2025 FY 2025 2-Bedroom FMR
    Becker County, MN    $848     * 1.0171     * 1.04744     * 1.08013     = $976

  6. State Minimum Comparison
    In keeping with HUD policy, the preliminary FY 2025 FMR is checked to ensure that it does not fall below the state minimum.

    Area Preliminary FY2025
    2-Bedroom FMR    		 FY 2025 Minnesota
    State Minimum    		 FINAL FY2025 2-Bedroom FMR
    Becker County, MN $976 $933 $976 ≥ $933 Use Becker County, MN FMR of $976

  7. Bedroom Ratios Application
    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 2025 FMRs By Unit Bedrooms
      Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
    FY 2025 FMR $669 $750 $976 $1,305 $1,419

  8. Comparison to Previous Year
    The FY2025 FMRs for each bedroom size must not be below 90% of the FY2024 FMRs.

      Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
    FY2024 FMR $687 $801 $1,014 $1,361 $1,505
    FY2024 floor $619 $721 $913 $1,225 $1,355
    FY 2025 FMR $669 $750 $976 $1,305 $1,419
    Use FY2024 floor for FY2025? No No No No No

FINAL FY2025 Rents for All Bedroom Sizes for Becker County, MN

FINAL FY 2025 FMRs By Unit Bedrooms
  Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
FINAL FY 2025 FMR $669 $750 $976 $1,305 $1,419

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/datasets/fmr/fmrs/FY2025_code/2025summary.odn?&year=2025&fmrtype=FINAL&selection_type=county&fips=2700599999

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Prepared by the Program Parameters and Research Division, HUD. Technical problems or questions? Contact Us.