FY 2013 Median Family Income Documentation System

Median Family Income Calculation Methodology

Estimates of median family income for metropolitan and non-metropolitan areas are developed as follows:

  1. 2006-2010 ACS estimates of median family income calculated by the Census Bureau for HUD's Fair Market Rent and Income Limit areas are used as the basis for FY 2013.
  2. In areas where the 2010 5-year ACS estimate is smaller than the reported margin of error, the state non-metro estimate of median family income is used.
  3. In areas where there is a 2010 1-year ACS estimate of median family income that exceeds its margin of error, the 1-year ACS estimate becomes the basis for median family income.
  4. Once the appropriate 2010 ACS data has been selected, the data are set as of December 2011 using the December national CPI value divided by the 2010 National CPI value.
  5. All estimates are then trended from December 2011 to April 2013 (1 ¼ year) with a trending factor of 1.66% per year. The trend factor is calculated as the annual growth rate in the national 1-year estimate of median family income between the 2005 and 2010 American Community Surveys.

The Orlando-Kissimmee-Sanford, FL MSA, has published local area 1-year 2010 ACS Survey results.

The results of the Median Family Income Step by Step Process

Orlando-Kissimmee-Sanford, FL MSA Results

  1. The following are the 2010 American Community Survey 5-year median income estimate and margin of error for Orlando-Kissimmee-Sanford, FL MSA:
    Area ACS2010 5-Year
    Median Income
    ACS2010 5-Year
    Margin of Error
    Ratio Result
    Orlando-Kissimmee-Sanford, FL MSA $58,474 $592 $592 / $58,474
    =
    0.01
    0.01 < 1

    Use ACS2010 Orlando-Kissimmee-Sanford, FL MSA
    Median Income
  2. Since there is an ACS2010 1-year estimate available, a comparison is made in order to determine if the 1-year ACS2010 estimate is different from zero:
    Area ACS2010 1-Year
    Median Income
    ACS2010 1-Year
    Margin of Error
    Ratio Result
    Orlando-Kissimmee-Sanford, FL MSA $55,038 $1,205 $1,205 / $55,038
    =
    0.022
    0.022 < 1

    Update to ACS2010 1-Year
    Median Income
  3. The calculation of the CPI Update Factor is as follows:
    Area 2011 December CPI 2010 Annual CPI CPI Update Factor
    Orlando-Kissimmee-Sanford, FL MSA 227.033 218.056 (227.033 / 218.056)
    =
    1.04117
  4. The FY 2013 median family income is estimated as follows:
    Area ACS2010 1-Year Estimate CPI Update Factor Trending
    1.66% for 1.25 years
    FY 2013
    Area MFI Estimate
    Orlando-Kissimmee-Sanford, FL MSA $55,038 1.04117 1.01661.25
    =
    1.02074
    ($55,038 * 1.04117 * 1.02074)
    =
    $58,492.07
  5. In keeping with HUD policy, the median family income estimate is rounded to the nearest $100:
    Area Unrounded
    FY 2013 MFI Estimate
    Rounded
    FY 2013 MFI Estimate
    Orlando-Kissimmee-Sanford, FL MSA $58,492.07 $58,500
Data file last updated Tues., Dec. 11, 2012.
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