FY2012 Fair Market Rent Documentation System

The Final FY2012 Bucks County FMRs for All Bedroom Sizes

The following table shows the Final FY2012 FMRs by unit bedrooms for Bucks County.

Final FY2012 FMRs By Unit Bedrooms
  Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
Final FY2012 FMR $788 $899 $1,075 $1,315 $1,586

FY2012 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 FY2011 FMR documentation which can be found at (Bucks County FY2011 FMR Documentation system). No changes have been made to these OMB-defined areas since the publication of Final FY2011 FMRs

NOTE: This is a 50th Percentile Final FY2012 FMR area as established by HUD regulations. To see the Final 40th Percentile Rents for Bucks County please click here.


Fair Market Rent Calculation Methodology - New for FY2012

Fair Market Rents for metropolitan areas and non-metropolitan FMR areas are developed as follows:

  1. 2005-2009 5-year ACS estimates of 2-bedroom adjusted standard quality rents calculated for each FMR area are used as the new basis for FY2012.

  2. In areas where the 2009 5-year ACS estimates are smaller than the reported margin of error, the state non-metro estimate of 2-bedroom adjusted standard quality rent is used.

  3. HUD calculates a recent-mover adjustment factor by comparing a 2009 1-year adjusted recent-mover 2-bedrooom rent to the 5-year adjusted standard quality rent for the same area in the following manner:

    1. In areas where there are at least 100 observations included in the 2009 1-year ACS estimate of 2-bedroom recent-mover rents, a statistical comparison is made between the 5-year 2-bedroom adjusted standard quality rent and the 1-year 2-bedroom recent-mover rent available from the ACS.

      • If the 1-year data are statistically different than the 5-year data, HUD calculates a recent-mover adjustment factor between the 5-year data and the 1-year data and applies this to the 5-year data. This recent-mover adjustment factor is floored at 1.0.

      • If the 1-year data are not statistically different than the 5-year data, HUD applies a recent-mover adjustment factor of 1 to the 5-year data.

    2. In areas where there are less than 100 observations of 2009 1-year ACS estimate of 2-bedroom recent-mover rent, a statistical comparison is made between the 5-year 2-bedroom adjusted standard quality rent and the 1-year 2-bedroom recent-mover rent for smallest geographic area containing the FMR area with at least 100 available observations of 2009 1-year ACS estimate of 2-bedroom recent-mover rent. For metropolitan areas, the order of geographies examined is: 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: State Non-Metropolitan Portion, Entire State, and Entire US.

      • If the 1-year data are statistically different than the 5-year data, HUD calculates a recent-mover adjustment factor between the 5-year data and the 1-year data and applies this to the 5-year data.

      • If the 1-year data are not statistically different than the 5-year data, HUD applies a recent-mover adjustment factor of 1 to the 5-year data.

  4. Rents are calculated as of December 2010 using one half of the relevant (regional or local) 2008-2009 CPI change and all of the relevant (regional or local) 2009-2010 CPI change.

  5. All estimates are then trended from December 2010 to April 2012 (15 months) with a trending factor of 3 percent per year.

  6. FY2012 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.


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

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA Results

  1. The following are the 2009 American Community Survey 5-year 2-Bedroom Adjusted Standard Quality Rent estimate and margin of error for Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA. The following calculations are based on data for the entirety of the OMB-defined metropolitan area of Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA. For additional information on area definitions please see the Bucks County FY2011 FMR Documentation system.

    Area ACS2009 5-Year
    2-Bedroom Adjusted
    Standard Quality Rent
    ACS2009 5-Year
    2-Bedroom Adjusted
    Standard Quality Rent
    Margin of Error
    Ratio Result
    Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA $958 $4 $4 / $958
    =
    0.004
    0.004 < 1

    Use ACS2009 5-Year
    Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA 2-Bedroom Adjusted Standard Quality Rent

    Since the ACS2009 Margin of Error is less than 1, the ACS2009 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA value is used for the estimate of 2-Bedroom Adjusted Standard Quality Rent:

    Area ACS2009 Rent
    Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA $958


  2. A recent-mover adjustment factor is applied to the smallest area of geography which contains Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA and has at least 100 Adjusted Standard Quality Recent-Mover observations in the ACS2009 1-year estimate:

    Geography 100 ACS2009 1-Year Adjusted
    Standard Quality Recent-Mover Observations?
    Metropolitan Area Yes

    The smallest area of geography which contains Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA and has at least 100 Adjusted Standard Quality Recent-Mover observations in the ACS2009 1-year estimate is Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA.


  3. The calculation of the relevant Recent-Mover Adjustment Factor for Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA is as follows:

    ACS2009 5-Year
    Area
    ACS2009 5-Year
    2-Bedroom Adjusted
    Standard Quality Rent
    ACS2009 5-Year
    2-Bedroom Adjusted
    Standard Quality Rent
    Margin of Error
    ACS2009 1-Year
    2-Bedroom Adjusted
    Standard Quality
    Recent-Mover Rent
    ACS2009 1-Year
    2-Bedroom Adjusted
    Standard Quality
    Recent-Mover Rent
    Margin of Error
    Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA $958 $4 $1,027 $28

    Area Z Score Result Recent-Mover
    Adjustment Factor
    Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA

    Z=
    $1,027 - $958

    ($282 + $42)

    Z=
    $69

    ($784 + $16)

    Z=
    $69

    $800

    Z=
    $69

    $28

    Z = 2.440

    2.440 >= 1.645

    ACS2009 1-Year Significant
    $1,027 / $958
    =
    1.072


  4. The calculation of the relevant 2009-to-2012 Update Factors for Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA is as follows:

    HUD updates the 2009 intermediate rent (as of June 2009) with the appropriate CPI change (local or regional) to establish rents as of December 2010. HUD then applies additional trending or results of Random Digit Dialing (RDD) surveys to update rents to April, 2012, the mid-point of FY 2012.

    Year Update Factor Type
    June 2009 to 2010 1.008512 Local CPI
    2010 to April 2012 1.03764 Trending
    3.0% for 1.25 years


  5. The FY2012 2-Bedroom Fair Market Rent for Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA is calculated as follows:

    Area ACS2009 5-Year Estimate Recent-Mover
    Adjustment Factor
    CPI Adjustment Trending
    3.0% for 1.25 years
    FY2012 2-Bedroom FMR
    Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA $958 1.072 1.008512 1.03764 $958 * 1.07202 * 1.00851 * 1.03764
    =
    $1,075


  6. In keeping with HUD policy, the preliminary FY2012 FMR is checked to ensure that is does not fall below the state minimum; since Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA is a multistate metropolitan area, the highest state minimum of the states comprising Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA is used:

    State FY2012
    State Minimum
    DELAWARE $584
    MARYLAND $584
    NEW JERSEY $584
    PENNSYLVANIA $563

    The relevant state minimum is that of DELAWARE at $584.

    Area Preliminary FY2012
    2-Bedroom FMR
    FY2012 DELAWARE
    State Minimum
    Final FY2012
    2-Bedroom FMR
    Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA $1,075 $584 $1,075 >= $584

    Use Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA FMR
    $1,075


Final FY2012 Rents for All Bedroom Sizes for Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA

The following table shows the Final FY 2012 FMRs by bedroom sizes.
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 Final FY 2012 2-Bedroom FMR to determine the Final FY 2012 FMRs for the different size units.

Click on the links in the table to see how the bedroom rents were derived.

Final FY2012 FMRs By Unit Bedrooms
  Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
Final FY2012 FMR $788 $899 $1,075 $1,315 $1,586

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.

NOTE: This is a 50th Percentile Final FY2012 FMR area as established by HUD regulations. Under current regulations, the 50th percent status of Bucks County will be re-evaluated in 2013. To see the Final 40th Percentile Rents for Bucks County please click here.


Data file last updated Thu., Sep 22, 2011.


FY2012 40th Percentile Rents for Other 50th Percentile Areas

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