This system provides complete documentation of the development of the Final FY 2008 Fair Market Rents (FMRs) for Hinds County, Mississippi. This page provides a summary of how the Final FY 2008 FMRs were developed and updated starting with the formation of the Final FY 2008 FMR Areas from the metropolitan Core-Based Statistical Areas (CBSAs) as established by the Office of Management and Budget, the 2000 Census benchmark, incorporating newly available American Community Survey (ACS) Data information, and updating to FY 2008 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.
HUD is largely replacing the accumulated 2001 through 2005 FMR update factors from various sources with 2005 ACS data). HUD uses ACS data in different ways according to how many two-bedroom standard quality and recent mover sample cases are available in the FMR area or its Core-Based Statistical Area (CBSA). Random digit dialing (RDD) surveys performed between 2001 and 2005 may also be used under certain conditions. FMR areas are classified into four ACS data availability categories:
In ACS-1 FMR areas, the 2000 Census to 2005 ACS update factor is the ratio of the 2005 ACS two-bedroom standard quality rent to the 2000 Census two-bedroom standard quality rent for the FMR Area.
In ACS-2 FMR areas, the 2000 Census to 2005 ACS update factor is either (1) the ratio of the 2005 ACS two-bedroom standard quality rent to the 2000 Census two-bedroom standard quality rent for the CBSA containing the FMR Area, or (2) the ratio of the 2005 ACS two-bedroom standard quality rent to the 2000 Census two-bedroom standard quality rent for the entire state (or population weighted average of states) containing the FMR area, whichever brings its 2005 updated rent closer to the value of its CBSA's 2005 updated rent.
In ACS-3 FMR areas, the 2000 Census to 2005 ACS update factor is the ratio of the 2005 ACS two-bedroom standard quality rent to the 2000 Census two-bedroom standard quality rent for the parts of the state not in ACS-1 or ACS-2 areas containing the FMR area, or the population-weighted average factor across such parts of the states containing each multi-state FMR area. In cases where there are fewer than 200 sample cases of 2005 ACS two-bedroom standard quality rents in the parts of the state not in ACS-1 or ACS-2 areas, HUD uses the ratio of the 2005 ACS two-bedroom standard quality rent to the 2000 Census two-bedroom standard quality rent for the entire state containing the FMR area as the update factor.
In ACS-4 FMR areas, the local 2005 ACS recent mover rent becomes a new base rent for 2005 if the updated 2000 Census base rent is outside its 90 percent confidence interval and the recent mover rent is greater than the local standard quality rent. This means the ACS is used to replace the updated 2000 base rent with a 2005 local ACS base rent.
In establishing Final FY 2008 FMR areas, HUD continues to use the revised Office of Management and Budget (OMB) area definitions that were first issued in 2003 and updated annually, but differ from the final FY 2007 FMR areas in that additional modifications to the county-based statistical areas as defined by OMB have been made.
The FY 2007 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.
Additionally, 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 (as amended and updated).
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.
Hinds County is in the new Jackson, MS HUD Metro FMR Area, so all information presented here applies to all of the Jackson, MS HUD Metro FMR Area.
Jackson, MS HUD Metro FMR Area is made up of the following:
Copiah County, MS ; Hinds County, MS ; Madison County, MS ; and Rankin County, MS .
The Jackson, MS HUD Metro FMR Area is a HUD-defined metropolitan FMR area that is part of the Jackson, MS MSA, but differs because some other part of the Jackson, MS 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 Jackson, MS Evaluated Metro FMR Area ($541) does not differ from the 2000 Census 40th Percentile Base Rent for Jackson, MS MSA ($534) by at least 5 percent:
($541 / $534) - 1 = 1.013 - 1 = 1.3 percent < 5.0 percent.
Additionally, HUD compared the 2000 Census Median Family Income for Jackson, MS HUD Metro FMR Area ($45,333) to the 2000 Census Median Family Income for Jackson, MS MSA ($44,373) 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:
($45,333 / $44,373) - 1 = 1.022 - 1 = 2.2 percent < 5.0 percent.
Therefore, HUD assigns Jackson, MS HUD Metro FMR Area the 2000 Census Base Rent of Jackson, MS MSA for purposes of computing the Final FY 2008 FMRs.
Jackson, MS HUD Metro FMR Area has a 2000 Census Base Rent of
$534.
Jackson, MS HUD Metro FMR Area is an ACS-1 area.
ACS-1 areas are areas that have at least 200 2005 ACS standard quality survey results. Jackson, MS HUD Metro FMR Area has a 2005 ACS median standard quality rent of $695 and a 2000 Census median standard quality rent of $552. This yields an update factor of $695 / $552 = 1.2591. The 2005 Intermediate rent is then calculated as the 2000 Census Rent Mover base rent times this update factor.
2005 Intermediate Rent = $534 x 1.2591
2005 Intermediate Rent = $672
NOTE: The update factor shown in the calculation above may not match exactly the 2000 - 2005 update factor shown throughout the demonstration due to the rounding of Fair Market Rents to whole dollar amounts
HUD updates the 2005 updated rents (as of June 2005) with the appropriate CPI change (local or regional) or RDD Result to establish rents as of December 2006. HUD then applies additional trending or results of Random Digit Dialing (RDD) surveys to update rents to FY 2008.
The Jackson, MS HUD Metro FMR Area has the following 2005-to-2006 Update Factor:
| Update Factors used between June 2005 and April 2008 | ||||
|---|---|---|---|---|
| Year | Update Factor | Type | Local RDD Completed? | Local RDD Used? |
| 6/2005 to 2006 | 1.0714 | Hurricane Adjustment | Yes | No |
| 2006 to 2008 | 1.0376 |
Trend Factor 3% for 1.25 Years =1.031.25 |
No | No |
The Final FY 2008 2-Bedroom FMR is simply the product of the 2000 Census Base Rent, the 2000-to-2005 Update Factor and the 2005-to-2008 Update Factors for Jackson, MS HUD Metro FMR Area as determined above:
Jackson, MS HUD Metro FMR Area Final FY 2008 FMR
= $534 x 1.2584 x 1.0714 x 1.0376
= $672 x 1.0714 x 1.0376
= $720 x 1.0376
= $747
The following table shows the Final FY 2008 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 2008 2-Bedroom FMR to determine the Final FY 2008 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 Jackson, MS HUD Metro FMR Area.
Click on the links in the table to see how the bedroom rents were derived.
| Final FY 2008 FMRs By Unit Bedrooms | |||||
|---|---|---|---|---|---|
| Efficiency | One-Bedroom | Two-Bedroom | Three-Bedroom | Four-Bedroom | |
| Final FY 2008 FMR | $570 | $644 | $747 | $899 | $926 |
The FMRs for unit sizes larger than four bedrooms are calculated by adding 15 percent to the fourbedroom 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.
or
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