3-Bedroom Rent Calculation for Clackamas County

Clackamas County is in Portland-Vancouver-Hillsboro, OR-WA MSA and is assigned the 3-Bedroom FMR for that area. The 3-Bedroom FMR for Portland-Vancouver-Hillsboro, OR-WA MSA is computed as a function of the ratio of the 2010 5-Year 3-Bedroom American Community Survey Rent to the 2010 5-Year 2-Bedroom American Community Survey Rent. This 3-Bedroom Rent Ratio is applied to the Final FY 2013 2-Bedroom FMR to determine the 3-Bedroom FMR.

For Final FY 2013 FMRs the bedroom ratio calculations have been updated from those used in the Final FY 2012 FMR process.

The tables below provide the relevant steps for computing the Final FY 2013 3-Bedroom FMR:


  1. Check the Margin of Error Ratios for Portland-Vancouver-Hillsboro, OR-WA MSA. If either Margin of Error Ratio is greater than 1 or if there is not sufficient data to calculate the ratio, then the bedroom ratio is determined using data for the smallest geographic area encompassing Portland-Vancouver-Hillsboro, OR-WA MSA for which there is acceptable data.

    Check Margin of Error Ratios for Portland-Vancouver-Hillsboro, OR-WA MSA
    Area 2006-2010 5-Year ACS
    3-Bedroom Adjusted
    Standard Quality Rent
    Estimate
    2006-2010 5-Year ACS
    3-Bedroom Adjusted
    Standard Quality Rent
    Margin of Error
    3-Bedroom
    Margin of Error Ratio
    2006-2010 5-Year ACS
    2-Bedroom Adjusted
    Standard Quality Rent
    Estimate
    2006-2010 5-Year ACS
    2-Bedroom Adjusted
    Standard Quality Rent
    Margin of Error
    2-Bedroom
    Margin of Error Ratio
    Portland-Vancouver-Hillsboro, OR-WA MSA $1,085 $10 $10 / $1,085
    =
    0.009
    $799 $5 $5 / $799
    =
    0.006

    The smallest geographic area for which both Margin of Error Ratios can be computed and are less than 1 is Portland-Vancouver-Hillsboro, OR-WA MSA.



  2. The Preliminary 3-Bedroom Rent Ratio for Portland-Vancouver-Hillsboro, OR-WA MSA is caluclated by dividing the 2006-2010 5-Year ACS 3-Bedroom Adjusted Standard Quality Rent Estimate for Portland-Vancouver-Hillsboro, OR-WA MSA by the 2006-2010 5-Year ACS 2-Bedroom Adjusted Standard Quality Rent Estimate for Portland-Vancouver-Hillsboro, OR-WA MSA.

    Preliminary Computation of 3-Bedroom Rent Ratio for Portland-Vancouver-Hillsboro, OR-WA MSA
    2006-2010 5-Year ACS
    3-Bedroom Adjusted
    Standard Quality Rent
    Estimate
    2006-2010 5-Year ACS
    2-Bedroom Adjusted
    Standard Quality Rent
    Estimate
    Preliminary 3-Bedroom
    Rent Ratio
    $1,085 $799 $1,085 / $799
    =
    1.358


  3. The Preliminary 3-Bedroom Rent Ratio is checked against the caps and floors for that bedroom size. The floor is set at the 10th percentile of the national distribution of geographic areas with at least 100 2006-2010 5-Year ACS Adjusted Standard Quality observations, while the cap is set at the 90th percentile of the same distribution.

    Check Caps and Floors
    Portland-Vancouver-Hillsboro, OR-WA MSA
    Preliminary 3-Bedroom
    Rent Ratio
    3-Bedroom
    Rent Ratio Floor
    3-Bedroom
    Rent Ratio Cap
    Portland-Vancouver-Hillsboro, OR-WA MSA
    Preliminary 3-Bedroom
    Rent Ratio
    1.358 1.146 1.356 1.358 is greater than cap of 1.356

    Set preliminary ratio to 1.356


  4. In order to more easily house large families, 3-Bedroom Rent Ratios receive an additional 8.7 percent increase, per HUD regulation.

    3-Bedroom Rent Bonus
    Portland-Vancouver-Hillsboro, OR-WA MSA
    Preliminary 3-Bedroom Rent Ratio
    3-Bedroom
    Rent Bonus
    Portland-Vancouver-Hillsboro, OR-WA MSA
    Preliminary 3-Bedroom
    Rent Ratio
    1.356 1.087 1.356 * 1.087
    =
    1.474


  5. Multiply the 3-Bedroom Rent Ratio by the 2-Bedroom Fair Market Rent to determine the 3-Bedroom Fair Market Rent for Portland-Vancouver-Hillsboro, OR-WA MSA.

    Final Computation of 3-Bedroom FMR for Portland-Vancouver-Hillsboro, OR-WA MSA
    Final 3-Bedroom
    Rent Ratio
    Final FY 2013
    2-Bedroom FMR
    Final FY 2013
    3-Bedroom FMR
    1.474 $912 $912 * 1.474 = $1,344


HUD Home Page  | HUD User Home  | Data Sets  | Fair Market Rents  | Section 8 Income Limits  | Multifamily Tax Subsidy Project (MTSP) Income Limits  | HUD LIHTC Database  |

Technical Problems or questions? Contact Us.