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$fmrtype$ FY Fair Market Rent Documentation System -- Summary for Pal
$fmrtype$ FY Fair Market Rent Documentation System
The $fmrtype$ FY Pal FMRs for All Bedroom Sizes
The following table shows the FY 2009 FMRs by unit bedrooms.
$fmrtype$ FY FMRs By Unit Bedrooms
Efficiency
One-Bedroom
Two-Bedroom
Three-Bedroom
Four-Bedroom
FY FMR
$601
$735
$866
$1,167
$1,301
The remainder of this page provides complete documentation of the development of the
$fmrtype$ FY Fair Market Rents (FMRs) for
Pal.
This page provides a summary of how the $fmrtype$ FY FMRs
were developed and updated starting with the formation of the FY FMR Areas from the
metropolitan Core-Based Statistical Areas (CBSAs) as established by the Office of Management and Budget
and incorporating newly available 2006 American Community Survey (ACS) Data.
FY FMRs include information from local Random Digit Dialing (RDD) surveys conducted during the first
quarter of 2008. Aspects of the derivation of $fmrtype$ FY rents exlusive to FY 2009 are made explicit in the following text.
Aspects unchanged from FY 2008 can be reviewed by clicking on the associated link.
FY FMR Area Geography
FY FMR Areas Follow FY 2008 Area Definitions with Modifications
FY FMR areas continue to use the revised Office of Management and Budget (OMB)
area definitions that were first issued in 2003 along with HUD defined Metropolitan areas (HMFAs) as described in the
FY 2008 FMR documentation which can be found at (Pal FY 2008 FMR Documentation system).
FY areas reflect changes made to metropolitan areas by OMB through November 20, 2007 as published in OMB bulletin 08-01.
Palm Bay-Melbourne-Titusville, FL MSA is made up of the following:
Brevard County, FL
.
Pal FMR Area Derivation (RECAP)
Palm Bay-Melbourne-Titusville, FL MSA is entirely within the old Melbourne--Titusville--Palm Bay, FL MSA;
therefore, no evaluations were made with regard to 2000 Census base rents or
2000 Census Median Family Incomes.
$fmrtype$ FY FMRs
HUD continues its use of ACS data in FY 2009, by building upon the FY 2008 Final FMRs (Pal FY 2008 FMR Documentation system).
As in FY 2008, HUD uses 2006 ACS data in four 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). ACS-1 through ACS-4 areas are described in detail here.
In most cases, $fmrtype$ FY FMRs are based on changes in rents measured by differences in ACS data collected in 2005 and 2006 and updated
CPI rent and utility inflation indexes. Depending on the size of the ACS survey sample, State or Local ACS data is used to update a June 2005-calculated
gross rent from the Final FY 2008 FMRs (Pal FY 2008 FMR Documentation system)
to June 2006. In some cases, as described below, the 2006 ACS Survey result is used instead of a 2005 to 2006 updated value. The ACS updated 2006
rent is then adjusted with CPI inflation factors that measure changes from mid-2006 though year end 2007 and 1.25 years of trending to arrive at
$fmrtype$ FY FMRs. RDD survey results are applied where available and appropriate.
Palm Bay-Melbourne-Titusville, FL MSA is an ACS-1 area.
ACS-1 areas are FMR Areas which have at least 200 sample cases of two-bedroom standard quality rents.
ACS-1 areas may be MSAs, subareas that are assigned CBSA base rents, subareas that have their own base rents, or
large nonmetropolitan counties.
In ACS-1 FMR areas, the update factor used to generate the June 2006 value is the ratio of the 2006 ACS two-bedroom standard quality
rent to the 2005 ACS two-bedroom standard quality rent for the FMR Area.
Generating a June, 2005 Rent from FY 2008 Final FMRs
In order to apply 2005 to 2006 ACS changes to FMRs (ACS data are assumed to be as of June of their respective survey years), FY 2008 FMRs are first
deflated to mid-2005 values by removing the CPI inflation and trend factors used to update mid-2005 values to April, 2008 inherint in the Final FY
2008 FMRs. (Pal FY 2008 FMR Documentation system.)
Rent2005
=
Final FY 2008 Rent (CPI Change2005).5 x (CPI Change2006) x (Trend)
Rent2005
=
$815 (1.0403).5 x (1.0503) x (1.0376)
Rent2005
=
$815 (1.02) x (1.0503) x (1.0376)
Rent2005
=
$815 (1.0713) x (1.0376)
Rent2005
=
$815 1.1116
Rent2005 = $733
The 2005 to 2006 Update Factor using 2006 ACS Data
As stated earlier, Palm Bay-Melbourne-Titusville, FL MSA is an ACS-1 area.
ACS-1 areas are areas that have at least 200 ACS standard quality survey results in both the 2005 and 2006 surveys.
The 2005 and 2006 ACS results for Palm Bay-Melbourne-Titusville, FL MSA are used in the calculation of the 2005 to 2006 update factor.
The 2005 ACS result is $760
and the 2006 ACS result is $812.
This leads to an update factor of:
UpdateFactor05-06 = $812 / $760
UpdateFactor05-06 = 1.0684
Therefore, the 2006 Updated intermediate rent for Palm Bay-Melbourne-Titusville, FL MSA is:
2006 Intermediate Rent = $733 x 1.0684
2006 Intermediate Rent = $783
NOTE: The update factor shown in the calculation above may not match exactly the 2005 - 2006 update factor shown throughout the demonstration
due to the rounding of Fair Market Rents to whole dollar amounts
The 2006-to-2009 Update Factors
HUD updates the 2006 itermediate rent (as of June 2006) with the appropriate CPI change (local or regional) to establish rents as of December 2007.
HUD then applies additional trending or results of Random Digit Dialing (RDD) surveys to update rents to April, 2009, the mid-point of FY 2009.
The Palm Bay-Melbourne-Titusville, FL MSA has the following 2006-to-2009 Update Factor:
Update Factors used between June 2005 and April 2008
The $fmrtype$ FY 2-Bedroom FMR is simply the product of the
2005 Rent from deflated from FINAL FY 2008 FMRs, the 2005-to-2006 Update Factor and the 2006-to-2009 Update Factors for Palm Bay-Melbourne-Titusville, FL MSA as determined above:
The following table shows the
FY 2009 FMRs by unit bedrooms.
The FMRs for units
with different numbers of bedrooms are computed from the ratio of the
2005 Revised Final FMRs (based on 2000 Decennial Census Data) for the different unit sizes to the
2005 2-Bedroom Revised Final FMRs. These Rent Ratios are applied to the
FY 2009 2-Bedroom FMR
to determine the FY 2009 FMRs
for the different size units.
Click on the links in the table to see how the bedroom rents were derived.
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.
