This system provides complete documentation of the development of the Final FY 2007 Fair Market Rents (FMRs) for Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area. This page provides a summary of how the Final FY 2007 FMRs were developed and updated starting with the formation of the Final FY 2007 FMR Areas from the metropolitan Core-Based Statistical Areas (CBSAs) as established by the Office of Management and Budget, the 2000 Census benchmark, incorporating information from Revised Final FY 2005 FMRs, and updating to FY 2007 including information from local Random Digit Dialing (RDD) survey data. Click on links in the tables below to see more detail on how the data were developed.
In establishing Final FY 2007 FMR areas, HUD continues to use the revised Office of Management and Budget (OMB) area definitions that were first issued in 2003 and updated in 2005, but differ from the final FY 2006 FMR areas in that additional modifications to the county-based statistical areas as defined by OMB have been made.
The FY 2006 FMR area definitions were derived by examining the 2003 OMB metropolitan areas to see if and how they differed from FY 2005 FMR areas. If a new metropolitan area differed from the old FMR area(s) covering the same geography, HUD checked the 2000 Census 40th Percentile Base Rents for each part of the new metropolitan area that was previously in a different old FMR area against the 2000 Census 40th Percentile Base Rent for the entire new area. On these pages, the parts of the new metropolitan areas that were previously in different old FMR areas are referred to as "Evaluated Metro FMR Areas."
If any of the Evaluated Metro FMR Areas in a new metropolitan area had 2000 Census 40th Percentile Base Rents that differed from the 2000 Census 40th Percentile Base Rent of the entire area by at least 5 percent, HUD established them as separate "HUD Metro FMR Areas" (HMFA) within the new metropolitan area and assigned them their own 2000 Census Base Rent.
Any Evaluated Metro FMR Area with a 2000 Census 40th Percentile Base Rent that did not differ from the entire metropolitan area 2000 Census 40th Percentile Base Rent by at least 5 percent received the 2000 Census Base Rent for the entire metropolitan area. If there was more than one such Evaluated Metro FMR Area in a metropolitan area, all Evaluated Metro FMR Areas assigned the metropolitan area 2000 Census Base Rent are treated as a single FMR area. Unless such "recombined" areas constitute the entire new metropolitan area however, they are also renamed as "HUD Metro FMR Areas" (HMFA) because such FMR areas are not the same geography as the official OMB metropolitan area definitions.
For example, suppose a new metropolitan area consists of an old FMR area, half of another old FMR area, and a formerly nonmetropolitan county. HUD would evaluate the 2000 Census 40th Percentile Base Rents for each of the three parts (Evaluated Metro FMR Areas) that comprise the new area against the 2000 Census Base 40th Percentile Rent for the entire new area.
If none of the three evaluated areas has a 2000 Census 40th Percentile Base Rent that differs from the entire new metropolitan area 2000 Census 40th Percentile Base Rent by at least 5 percent, then the new metropolitan area was undivided and served as a FY 2006 FMR area in its entirety.
Suppose the Evaluated Metro FMR Area consisting of half of an old FMR area has a 2000 Census 40th Percentile Base Rent that differed from the entire metropolitan area's 2000 Census 40th Percentile Base Rent by more than 5 percent. Then HUD established two "HUD Metro FMR Areas": one consisting of the half of the old FMR area and assigned its own 2000 Census Base Rent, and the other consisting of the combination of the other old FMR area and the formerly nonmetropolitan county.
Most of the FY 2006 merged FMR areas remaining after the 5 percent rent test was applied had similar income limits. For the FY 2007 FMRs, separate FMR areas are created for any parts of old metropolitan areas, or formerly nonmetropolitan counties, that would have more than a 5 percent increase or decrease in their 2000 Census base area median family income as a result of implementing the 2003 OMB definitions.
Consider the example from above where a new metropolitan area consists of an old FMR area, half of another old FMR area, and a formerly nonmetropolitant county. HUD proposes to evaluate the 2000 Census base median family income for each of the three parts (Evaluated Metro FMR Areas) that comprise the new area against the 2000 Census Median Family Income for the entire new area.
Similarly to the 40th Percentile rent comparison, if none of the three evaluated areas has a 2000 Census Base median family income that differs from the entire new metropolitan area 2000 Census Base median family income by at least 5 percent, then the new metropolitan area was undivided and served as a FY 2007 FMR area in its entirety.
Suppose the Evaluated Metro FMR Area consisting of half of an old FMR area has a 2000 Census Base median family income that differed from the entire metropolitan area's 2000 Census Base median family income by more than 5 percent. Then HUD establishes two "HUD Metro FMR Areas": one consisting of the half of the old FMR area and assigned its own 2000 Census Base Rent, and the other consisting of the combination of the other old FMR area and the formerly nonmetropolitan county.
Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area is made up of the following:
Barrow County, GA ; Bartow County, GA ; Carroll County, GA ; Cherokee County, GA ; Clayton County, GA ; Cobb County, GA ; Coweta County, GA ; Dawson County, GA ; DeKalb County, GA ; Douglas County, GA ; Fayette County, GA ; Forsyth County, GA ; Fulton County, GA ; Gwinnett County, GA ; Heard County, GA ; Henry County, GA ; Jasper County, GA ; Newton County, GA ; Paulding County, GA ; Pickens County, GA ; Pike County, GA ; Rockdale County, GA ; Spalding County, GA ; and Walton County, GA .
The Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area is a HUD-defined metropolitan FMR area that is part of the Atlanta-Sandy Springs-Marietta, GA MSA, but differs because some other part of the Atlanta-Sandy Springs-Marietta, GA MSA has a 2000 Census 40th Percentile Base Rent and/or a 2000 Census Median Family Income that differs from the official metropolitan area's 2000 Census 40th Percentile Base Rent and/or 2000 Census Median Family Income by at least 5 percent.
The 2000 Census 40th Percentile Base Rent for Atlanta-Sandy Springs-Marietta, GA Evaluated Metro FMR Area ($746) does not differ from the 2000 Census 40th Percentile Base Rent for Atlanta-Sandy Springs-Marietta, GA MSA ($742) by at least 5 percent:
($746 / $742) - 1 = 1.005 - 1 = 0.5 percent < 5.0 percent.
Additionally, HUD compared the 2000 Census Median Family Income for Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area ($59,058) to the 2000 Census Median Family Income for Atlanta-Sandy Springs-Marietta, GA MSA ($58,520) to see if the difference is more than 5.0 percent. As can be seen from the calculation below, the difference is less than 5.0 percent:
($59,058 / $58,520) - 1 = 1.009 - 1 = 0.9 percent < 5.0 percent.
Therefore, HUD assigns Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area the 2000 Census Base Rent of Atlanta-Sandy Springs-Marietta, GA MSA for purposes of computing the Final FY 2007 FMRs.
Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area has a 2000 Census Base Rent of
$742.
The table below displays the parts of the new Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area that were in different FY 2005 FMR areas. The parts of old FMR Areas indicated by "*" in the table had insufficient recent mover rent samples to set an individual FMR, so they were combined into the Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area.
HUD uses a population weighted average of the change in rents between the 2000 Census Base Rents and the Revised Final FY 2005 FMRs for the different FY 2005 FMR Areas represented in the FY 2007 area to update the FY 2007 area's 2000 Census Base Rent to 2005. The table includes the data used to compute the population weighted average update factor. Links in the table show how the Revised Final FY 2005 FMRs were developed.
| Parts of Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area from Different FY 2005 FMR Areas | |||||
|---|---|---|---|---|---|
| FY 2005 FMR Area | Components of Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area in FY 2005 FMR Area | 2000 Population | FY 2005 FMR Area Data | ||
| 2000 Census Base Rent | Revised Final FY 2005 FMR | 2000-to-2005 Update Factor | |||
| Atlanta, GA MSA | Barrow County, GA; Bartow County, GA; Carroll County, GA; Cherokee County, GA; Clayton County, GA; Cobb County, GA; Coweta County, GA; DeKalb County, GA; Douglas County, GA; Fayette County, GA; Forsyth County, GA; Fulton County, GA; Gwinnett County, GA; Henry County, GA; Newton County, GA; Paulding County, GA; Pickens County, GA; Rockdale County, GA; Spalding County, GA; Walton County, GA | 4,112,198 | $799 | $834 | $834 / $799 = 1.0438 |
| Dawson County, GA* | Dawson County, GA | 15,999 | $585 | $655 | $655 / $585 = 1.1197 |
| Heard County, GA* | Heard County, GA | 11,012 | $459 | $514 | $514 / $459 = 1.1198 |
| Jasper County, GA* | Jasper County, GA | 11,426 | $408 | $456 | $456 / $408 = 1.1176 |
| Pike County, GA* | Pike County, GA | 13,688 | $456 | $510 | $510 / $456 = 1.1184 |
As noted above, the 2000-to-2005 update factor for Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area is a population weighted average of the change in rents between the 2000 Census Base Rents and the Revised Final FY 2005 FMRs for the parts in different FY 2005 FMR areas. It is computed by: (1) multiplying the change factors from each part of Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area in a different FY 2005 FMR area by the corresponding 2000 Census populations of these parts, (2) summing these products, and (3) dividing the sum by the total population of Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area.
2000-to-2005 Update Factor for Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area
= (1.0438 x 4,112,198 + 1.1197 x 15,999 + 1.1198 x 11,012 + 1.1176 x 11,426 + 1.1184 x 13,688 ) / 4,164,323
= (4,292,331.83 + 17,913.41 + 12,331.52 + 12,770.24 + 15,308.95 ) / 4,164,323
= (4,350,655.94) / 4,164,323 = 1.0447
The 2005 Intermediate Rent for 2-Bedroom units is used in the computation of the bedroom ratios that are applied to the Final FY 2007 2-Bedroom FMR to yield the other bedroom-unit FMRs. The 2005 2-Bedroom Intermediate Rent is simply the 2000 Census 2-Bedroom Base Rent times the 2000-to-2005 update factor:
2005 2-Bedroom Intermediate Rent for Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area
= $742 x 1.0447 = $775
The Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area has the following 2005-to-2007 Update Factors:
| Update Factors used between FY2005 and FY2007 | ||||
|---|---|---|---|---|
| Year | Update Factor | Type | Local RDD Completed? | Local RDD Used? |
| 2005 to 2006 | 0.9850 | Local CPI Factor | No | No |
| 2006 to 2007 | 1.0210 | Local CPI Factor | No | No |
The Final FY 2007 2-Bedroom FMR is simply the product of the 2000 Census Base Rent, the 2000-to-2005 Update Factor and the 2005-to-2007 Update Factor for Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area as determined above:
Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area Final FY 2007 FMR
= $742 x 1.0447 x 0.9850 x 1.0210 = $775 x 0.9850 x 1.0210 = $763 x 1.0210 = $779
The following table shows the Final FY 2007 FMRs by unit bedrooms. The FMRs for units with different numbers of bedrooms are computed from the ratio of the 2005 Intermediate Rents for the different unit sizes to the 2005 2-Bedroom Intermediate Rent. These Rent Ratios are applied to the Final FY 2007 2-Bedroom FMR to determine the Final FY 2007 FMRs for the different size units.
The 2005 Intermediate Rents for different size units are computed from 2000 Census Base Rents that are updated to 2005 using the 2000-to-2005 update factors for each unit size derived from the Revised Final FY 2005 FMRs for the old FMR areas that contained Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area.
Click on the links in the table to see how the bedroom rents were derived.
| Final FY 2007 FMRs By Unit Bedrooms | |||||
|---|---|---|---|---|---|
| Efficiency | One-Bedroom | Two-Bedroom | Three-Bedroom | Four-Bedroom | |
| Final FY 2007 FMR | $647 | $700 | $779 | $948 | $1,035 |
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