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This system provides complete documentation of the development of the $fmrtype$ FY 2008 Fair Market Rents (FMRs) for New York, NY H. This page provides a summary of how the $fmrtype$ FY 2008 FMRs were developed and updated starting with the formation of the $fmrtype$ 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 $fmrtype$ 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.
New York, NY HUD Metro FMR Area** is made up of the following:
Bronx County, NY ; Kings County, NY ; New York County, NY ; Putnam County, NY ; Queens County, NY ; Richmond County, NY ; and Rockland County, NY .
**Although Westchester County, NY is provided a separate FMR by statute, the data for Westchester County, NY are used in computing the FMR of the New York, NY HUD Metro FMR Areas and the New York, NY PMSA as is also required by statute.
The New York, NY HUD Metro FMR Area is a HUD-defined metropolitan FMR area that is part of the New York-Northern New Jersey-Long Island, NY-NJ-PA MSA. Although the 2000 Census 40th Percentile Base Rent of the New York, NY HUD Metro FMR Area ($838) does not differ from the 2000 Census 40th Percentile Base Rent for New York-Northern New Jersey-Long Island, NY-NJ-PA MSA ($847) by more than 5.0 percent,
1 - ($838 / $847) = 1 - 0.989 = 1.1 percent < 5.0 percent
it is established as a separate HUD FMR area because the New York, NY HUD Metro FMR Area has a 2000 Median Family Income ($46,471) that differs from the 2000 Census Median Family Income for New York-Northern New Jersey-Long Island, NY-NJ-PA MSA ($58,934) by at least 5.0 percent.
1 - ($46,471 / $58,934) = 1 - 0.789 = 21.1 percent >= 5.0 percent.
Therefore, New York, NY HUD Metro FMR Area is assigned the 2000 Census Base Rent of
$838
that is used in the calculation of $fmrtype$ FY 2008 FMRs.
New York, NY HUD Metro FMR Area is an ACS-4 area. New York, NY HUD Metro FMR Area is large enough to have a 2005 ACS survey that contains at least 200 Recent Mover cases. Therefore, HUD compares the 2005 updated rent using the change in Standard Quality Rents from the 2000 Census to the 2005 ACS for the New York, NY HUD Metro FMR Area to the 2005 ACS Recent Mover survey result. If the 2005 Updated rent using the standard quality update factor is outside the confidence interval of the recent mover rent and the recent mover rent is larger than the local standard quality rent, then the 2005 Intermediate Rent is set at the 2005 ACS recent mover survey result. If the 2005 Updated rent using the standard quality update factor is outside the confidence interval of the recent mover rent and the recent mover rent is smaller than the local standard quality rent, then the 2005 Intermediate Rent is set at the 2005 ACS standard quality survey result. Otherwise, the 2005 intermediate rent is set using the standard quality update factor calculated for New York, NY HUD Metro FMR Area.
The 2000 to 2005 standard quality update factor for New York, NY HUD Metro FMR Area is 1.2854. The 2000 Census Recent Mover base rent is $838. The 2005 updated rent for comparison is $838 x 1.2854 = $1,077.
The 2005 ACS Recent Mover survey result for New York, NY HUD Metro FMR Area is $1,171 with a survey error of +/-$38.
The following table summarizes the decision criteria for using the 2005 ACS survey rent result for recent movers:
| 2005 Local ACS Survey Rent for New York, NY HUD Metro FMR Area | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2000 Census Base Rent | Local SQ Update Factor | ACS Survey Local Recent Mover Rent | ACS Survey Confidence Interval | ACS Survey Local Standard Quality Rent | Is SQ-updated Rent outside confidence Interval of RM Rent? | Is RM Rent greater than SQ rent? | 2005 Basis | 2005 Intermediate Rent |
| $838 | 1.2854 | $1,171 | +/-$38 | $923 | Is ABS($1,171-($838x1.2854))>$38? Is ABS($1,171-$1,077)>$38? Is $94>$38? Yes |
Is $1,171>$923? Yes |
2005 ACS Recent Mover Survey Result | $1,171 |
This yields an effective 2000 - 2005 change factor for New York, NY HUD Metro FMR Area of $1171 / $838 = 1.3974
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 New York, NY 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 | 1.0846 | Local CPI Factor | No | No |
| 2006 to 2008 | 1.0376 |
Trend Factor 3% for 1.25 Years =1.031.25 |
No | No |
The 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 New York, NY HUD Metro FMR Area as determined above:
New York, NY HUD Metro FMR Area $fmrtype$ FY 2008 FMR
= $838 x 1.3974 x 1.0846 x 1.0376
= $1,171 x 1.0846 x 1.0376
= $1,270 x 1.0376
= $1,318
The following table shows the 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 FY 2008 2-Bedroom FMR to determine the 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 FMR for the old FMR area that contained New York, NY HUD Metro FMR Area.
Click on the links in the table to see how the bedroom rents were derived.
| $fmrtype$ FY 2008 FMRs By Unit Bedrooms | |||||
|---|---|---|---|---|---|
| Efficiency | One-Bedroom | Two-Bedroom | Three-Bedroom | Four-Bedroom | |
| FY 2008 FMR | $1,095 | $1,185 | $1,318 | $1,621 | $1,823 |
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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