FY 2013 Fair Market Rent Documentation System

The $fmrtype$ FY 2013 Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area FMRs for All Bedroom Sizes

The following table shows the $fmrtype$ FY 2013 FMRs by unit bedrooms for Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area.

$fmrtype$ FY 2013 FMRs By Unit Bedrooms
  Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
$fmrtype$ FY 2013 FMR $1,035 $1,156 $1,444 $1,798 $1,955

FY 2013 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 (Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area FY2012 FMR Documentation system). No changes have been made to these OMB-defined areas since the publication of Final FY2012 FMRs

The Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area is comprised of the following towns: Amesbury Town city (Essex County), Massachusetts; Beverly city (Essex County), Massachusetts; Danvers town (Essex County), Massachusetts; Essex town (Essex County), Massachusetts; Gloucester city (Essex County), Massachusetts; Hamilton town (Essex County), Massachusetts; Ipswich town (Essex County), Massachusetts; Lynn city (Essex County), Massachusetts; Lynnfield town (Essex County), Massachusetts; Manchester-by-the-Sea town (Essex County), Massachusetts; Marblehead town (Essex County), Massachusetts; Middleton town (Essex County), Massachusetts; Nahant town (Essex County), Massachusetts; Newbury town (Essex County), Massachusetts; Newburyport city (Essex County), Massachusetts; Peabody city (Essex County), Massachusetts; Rockport town (Essex County), Massachusetts; Rowley town (Essex County), Massachusetts; Salem city (Essex County), Massachusetts; Salisbury town (Essex County), Massachusetts; Saugus town (Essex County), Massachusetts; Swampscott town (Essex County), Massachusetts; Topsfield town (Essex County), Massachusetts; Wenham town (Essex County), Massachusetts; Acton town (Middlesex County), Massachusetts; Arlington town (Middlesex County), Massachusetts; Ashby town (Middlesex County), Massachusetts; Ashland town (Middlesex County), Massachusetts; Ayer town (Middlesex County), Massachusetts; Bedford town (Middlesex County), Massachusetts; Belmont town (Middlesex County), Massachusetts; Boxborough town (Middlesex County), Massachusetts; Burlington town (Middlesex County), Massachusetts; Cambridge city (Middlesex County), Massachusetts; Carlisle town (Middlesex County), Massachusetts; Concord town (Middlesex County), Massachusetts; Everett city (Middlesex County), Massachusetts; Framingham town (Middlesex County), Massachusetts; Holliston town (Middlesex County), Massachusetts; Hopkinton town (Middlesex County), Massachusetts; Hudson town (Middlesex County), Massachusetts; Lexington town (Middlesex County), Massachusetts; Lincoln town (Middlesex County), Massachusetts; Littleton town (Middlesex County), Massachusetts; Malden city (Middlesex County), Massachusetts; Marlborough city (Middlesex County), Massachusetts; Maynard town (Middlesex County), Massachusetts; Medford city (Middlesex County), Massachusetts; Melrose city (Middlesex County), Massachusetts; Natick town (Middlesex County), Massachusetts; Newton city (Middlesex County), Massachusetts; North Reading town (Middlesex County), Massachusetts; Reading town (Middlesex County), Massachusetts; Sherborn town (Middlesex County), Massachusetts; Shirley town (Middlesex County), Massachusetts; Somerville city (Middlesex County), Massachusetts; Stoneham town (Middlesex County), Massachusetts; Stow town (Middlesex County), Massachusetts; Sudbury town (Middlesex County), Massachusetts; Townsend town (Middlesex County), Massachusetts; Wakefield town (Middlesex County), Massachusetts; Waltham city (Middlesex County), Massachusetts; Watertown city (Middlesex County), Massachusetts; Wayland town (Middlesex County), Massachusetts; Weston town (Middlesex County), Massachusetts; Wilmington town (Middlesex County), Massachusetts; Winchester town (Middlesex County), Massachusetts; Woburn city (Middlesex County), Massachusetts; Bellingham town (Norfolk County), Massachusetts; Braintree Town city (Norfolk County), Massachusetts; Brookline town (Norfolk County), Massachusetts; Canton town (Norfolk County), Massachusetts; Cohasset town (Norfolk County), Massachusetts; Dedham town (Norfolk County), Massachusetts; Dover town (Norfolk County), Massachusetts; Foxborough town (Norfolk County), Massachusetts; Franklin Town city (Norfolk County), Massachusetts; Holbrook town (Norfolk County), Massachusetts; Medfield town (Norfolk County), Massachusetts; Medway town (Norfolk County), Massachusetts; Millis town (Norfolk County), Massachusetts; Milton town (Norfolk County), Massachusetts; Needham town (Norfolk County), Massachusetts; Norfolk town (Norfolk County), Massachusetts; Norwood town (Norfolk County), Massachusetts; Plainville town (Norfolk County), Massachusetts; Quincy city (Norfolk County), Massachusetts; Randolph town (Norfolk County), Massachusetts; Sharon town (Norfolk County), Massachusetts; Stoughton town (Norfolk County), Massachusetts; Walpole town (Norfolk County), Massachusetts; Wellesley town (Norfolk County), Massachusetts; Westwood town (Norfolk County), Massachusetts; Weymouth Town city (Norfolk County), Massachusetts; Wrentham town (Norfolk County), Massachusetts; Carver town (Plymouth County), Massachusetts; Duxbury town (Plymouth County), Massachusetts; Hanover town (Plymouth County), Massachusetts; Hingham town (Plymouth County), Massachusetts; Hull town (Plymouth County), Massachusetts; Kingston town (Plymouth County), Massachusetts; Marshfield town (Plymouth County), Massachusetts; Norwell town (Plymouth County), Massachusetts; Pembroke town (Plymouth County), Massachusetts; Plymouth town (Plymouth County), Massachusetts; Rockland town (Plymouth County), Massachusetts; Scituate town (Plymouth County), Massachusetts; Wareham town (Plymouth County), Massachusetts; Boston city (Suffolk County), Massachusetts; Chelsea city (Suffolk County), Massachusetts; Revere city (Suffolk County), Massachusetts; Winthrop Town city (Suffolk County), Massachusetts; Seabrook town (Rockingham County), New Hampshire; and South Hampton town (Rockingham County), New Hampshire.

All information here applies to the entirety of the Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area.

Fair Market Rent Calculation Methodology - Updated for FY2013

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

  1. 2006-2010 5-year American Community Survey (ACS) estimates of 2-bedroom adjusted standard quality gross rents calculated for each FMR area are used as the new basis for FY2013.


  2. HUD calculates a recent-mover adjustment factor by comparing a 2010 1-year 40th percentile recent-mover 2-bedrooom rent to the 2006-2010 5-year 40th percentile adjusted standard quality gross rent for the same geographic area in the following manner. A statistical comparison is made between the 2006-2010 5-year 2-bedroom adjusted standard quality gross rent and the 2010 1-year 2-bedroom recent-mover gross rent for smallest geographic area containing the FMR area for which both the 2006-2010 5-year ACS 2-bedroom adjusted standard quality gross rent estimate is less than its respective margin of error and the 2010 1-year ACS 2-bedroom adjusted standard quality gross rent estimate from recent movers is less than its respective margin of error. For metropolitan areas, the order of geographies examined is: FMR Area, 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: FMR Area, State Non-Metropolitan Portion, Entire State, and Entire US.

  3. HUD calculates the appropriate recent-mover adjustment factor between the 5-year data and the 1-year data and applies this to the 5-year base rent estimate.

  4. Rents are calculated as of December 2011 using the relevant (regional or local) change in CPI from annual 2010 to annual 2011 as well as the change in national CPI from annual 2010 to December 2011.

  5. All estimates are then trended from December 2011 to April 2013 (15 months) with a trending factor of 3.27 percent per year.

  6. The FY2013 FMR is then calculated by multiplying the base rent, the recent-mover adjustment factor, the CPI adjustment, and the trend factor.

  7. FY2013 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

Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area Results

  1. The following are the 2010 American Community Survey 5-year 2-Bedroom Adjusted Standard Quality Gross Rent estimate and margin of error for Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area. The following calculations are based on data for Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area and not the entirety of the OMB-defined metropolitan area of Boston-Cambridge-Quincy, MA-NH MSA because the 2000 Census 40th Percentile Base Rent and/or 2000 Census Median Family Income 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. For additional information on area definitions please see the Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area FY2012 FMR Documentation system.

    Area ACS2010 5-Year
    2-Bedroom Adjusted
    Standard Quality Gross Rent
    ACS2010 5-Year
    2-Bedroom Adjusted
    Standard Quality Gross Rent
    Margin of Error
    Ratio Result
    Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area $1,229 $9 $9 / $1,229
    =
    0.007
    0.007 < 1

    Use ACS2010 5-Year
    Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area 2-Bedroom Adjusted Standard Quality Gross Rent

    Since the ACS2010 Margin of Error Ratio is less than 1, the ACS2010 Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area value is used for the estimate of 2-Bedroom Adjusted Standard Quality Gross Rent:

    Area ACS2010 Rent
    Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area $1,229


  2. A recent-mover adjustment factor is applied based on the smallest area of geography which contains Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area and has an ACS2010 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than 1:

    Area ACS2010 1-Year
    2-Bedroom Adjusted
    Standard Quality
    Recent-Mover Gross Rent
    ACS2010 1-Year
    2-Bedroom Adjusted
    Standard Quality
    Recent-Mover Gross Rent
    Margin of Error
    Ratio Result
    Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area $1,345 $31 $31 / $1,345
    =
    0.023
    0.023 < 1

    Use ACS2010 1-Year
    Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area 2-Bedroom
    Adjusted Standard Quality
    Recent-Mover Gross Rent

    The smallest area of geography which contains Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area and has an ACS2010 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than 1 is Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area.


  3. The calculation of the relevant Recent-Mover Adjustment Factor for Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area is as follows:

    ACS2010 5-Year
    Area
    ACS2010 5-Year
    40th Percentile
    2-Bedroom Adjusted
    Standard Quality Gross Rent
    ACS2010 1-Year
    40th Percentile
    2-Bedroom Adjusted
    Standard Quality
    Recent-Mover Gross Rent
    Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area $1,229 $1,345

    Area Ratio Recent-Mover Adjustment Factor
    Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area $1,345 / $1,229
    =
    1.0944
    1.0944 > 1.0

    Use calculated Recent-Mover
    Adjustment Factor of 1.0944


  4. The calculation of the relevant CPI Update Factors for Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area is as follows:

    HUD updates the 2010 intermediate rent with the ratio of the annual 2011 local or regional CPI to the annual 2010 local or regional CPI to establish rents as of 2011. HUD then updates this 2011 annual CPI with the ratio of the December 2011 national CPI to the annual 2010 national CPI to establish rents as of December 2011.

    Year Update Factor Type
    CPI Update Factor 1.0315 Local CPI


  5. The calculation of the Trend Factor is as follows:

    HUD applies an additional 15 months of trending to update rents to April, 2013, the mid-point of FY 2013. This trend factor is determined by taking the average annual growth rate in the national 1-Year Median Gross Rent between the 2005 and 2010 American Community Surveys.

    ACS2005U.S. 1-Year
    Median Gross Rent
    ACS2010U.S. 1-Year
    Median Gross Rent
    Average Annual Change in
    U.S. 1-Year
    Median Gross Rent
    Trend Factor
    3.27% for 1.25 years
    $728 $855 ($855 / $728) ^ (1/5)
    =
    (1.1745) ^ (1/5)
    =
    1.0327
    1.0327 ^ (1.25)
    =
    1.0410


  6. The FY 2013 2-Bedroom Fair Market Rent for Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area is calculated as follows:

    Area ACS2010 5-Year Estimate Recent-Mover
    Adjustment Factor
    Annual 2010 to
    December 2011
    CPI Adjustment
    Trending
    3.27% for 1.25 years
    FY 2013 2-Bedroom FMR
    Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area $1,229 1.0944 1.0315 1.0410 $1,229 * 1.0944 * 1.0315 * 1.0410
    =
    $1,444


  7. In keeping with HUD policy, the preliminary FY 2013 FMR is checked to ensure that is does not fall below the state minimum; since Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area is a multistate metropolitan area, the highest state minimum of the states comprising Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area is used:

    State FY 2013
    State Minimum
    MASSACHUSETTS $626
    NEW HAMPSHIRE $626

    The relevant state minimum is that of MASSACHUSETTS at $626.

    Area Preliminary FY 2013
    2-Bedroom FMR
    FY 2013 MASSACHUSETTS
    State Minimum
    $fmrtype$ FY 2013
    2-Bedroom FMR
    Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area $1,444 $626 $1,444 >= $626

    Use Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area FMR
    $1,444


$fmrtype$ FY 2013 Rents for All Bedroom Sizes for Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area

The following table shows the FY 2013 FMRs by bedroom sizes.
The FMRs for units with different numbers of bedrooms are computed from the ratio of the 40th percentile adjusted standard quality gross rent for the different unit sizes to the 40th percentile adjusted standard quality 2-Bedroom gross rent from the 2006-2010 5-year ACS. These Rent Ratios are applied to the FY 2013 2-Bedroom FMR to determine the FY 2013 FMRs for the different size units.

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

$fmrtype$ FY 2013 FMRs By Unit Bedrooms
  Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
FY 2013 FMR $1,035 $1,156 $1,444 $1,798 $1,955

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.


Data file last updated Tue., Apr 30, 2013.



Other HUD Metro FMR Areas in the Same MSA


Related $fmrtype$ FY 2013 FMR Areas


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