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FY 2016 Fair Market Rent Documentation System

The Final FY 2016 FMRs for All Bedroom Sizes

Final FY 2016 FMRs By Unit Bedrooms
Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
$473 $545 $730 $1,024 $1,105

The Office of Management and Budget release new Core Based Statistical Area definitions in February 2013. The Census American Community Survey incorporated these definitions in the ACS2013 release, which are the basis for FY2016 Fair Market Rents. HUD has elected to continue use of the pre-2013 definitions except where the post-2013 definitions result in a smaller FMR area. This is consistent with HUD's objective to maximize tenant choice by allowing FMRs to vary locally.

Grant County, Kentucky is part of the Grant County, KY HUD Metro FMR Area, which consists of the following counties: Grant County, Kentucky. All information here applies to the entirety of the Grant County, KY HUD Metro FMR Area.

Fair Market Rent Calculation Methodology

Show/Hide Methodology Narrative

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

  1. 2009-2013 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 FY2016 provided the estimate is statistically reliable. The test for reliability is whether the margin of error for the estimate is less than 50% of the estimate itself.

    If an area does not have a reliable 2009-2013 5-year, HUD checks whether the area has had a reliable estimate in any of the past 5 years. If so, the most recent reliable estimate is updated by the change in the area's corresponding State metropolitan or non-metropolitan area from the year of the most recent reliable estimate to 2009. This update value becomes the basis for FY2016.

    If an area has not had a reliable estimate in the past 5 years, the estimate State for the area's corresponding metropolitan area (if applicable) or State non-metropolitan area is used as the basis for FY2016.

  2. HUD calculates a recent mover adjustment factor by comparing a 2013 1-year 40th percentile recent mover 2-bedrooom rent to the 2009-2013 5-year 40th percentile adjusted standard quality gross rent. If either the recent mover and non-recent mover rent estimates are not reliable, HUD uses the recent mover adjustment for a larger geography. 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. The recent mover adjustment factor is floored at one.
  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 2014 using the relevant (regional or local) change in gross rent Consumer Price Index (CPI) from annual 2013 to annual 2014.
  5. All estimates are then inflated from 2014 to FY2016 using a trend factor based on the forecast of gross rent changes through FY2016.
  6. FY2016 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

  1. The following are the 2013 American Community Survey 5-year 2-Bedroom Adjusted Standard Quality Gross Rent estimate and margin of error for Grant County, KY HUD Metro FMR Area.
    Area ACS2013 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent ACS2013 5-Year 2-Bedroom Adjusted Standard Quality Gross Rent Margin of Error Ratio Result
    Grant County, KY HUD Metro FMR Area $673 $34 $34 / $673=0.051 0.051 < .5 Use ACS2013 5-Year Grant County, KY HUD Metro FMR Area 2-Bedroom Adjusted Standard Quality Gross Rent
    Since the ACS2013 Margin of Error Ratio is less than .5, the ACS2013 Grant County, KY HUD Metro FMR Area value is used for the estimate of 2-Bedroom Adjusted Standard Quality Gross Rent:
    Area ACS2013 Rent
    Grant County, KY HUD Metro FMR Area $673
  2. A recent mover adjustment factor is applied based on the smallest area of geography which contains Grant County, KY HUD Metro FMR Area and has an ACS2013 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than .5.
    Area ACS2013 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent ACS2013 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Margin of Error Ratio Result
    Grant County, KY HUD Metro FMR Area N/A N/A N/A No ACS2013 1-Year 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent Produced For Grant County, KY HUD Metro FMR Area
    Cincinnati, OH-KY-IN MSA $728 $15 0.021 0.021 < .5
    Use ACS2013 1-Year Cincinnati, OH-KY-IN MSA 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent

    The smallest area of geography which contains Grant County, KY HUD Metro FMR Area and has an ACS2013 1-year Adjusted Standard Quality Recent-Mover estimate with a Margin of Error Ratio that is less than .5 is Cincinnati, OH-KY-IN MSA.

  3. The calculation of the relevant Recent-Mover Adjustment Factor for Grant County, KY HUD Metro FMR Area is as follows:
    ACS2013 5-Year Area ACS2013 5-Year 40th Percentile 2-Bedroom Adjusted Standard Quality Gross Rent ACS2013 1-Year 40th Percentile 2-Bedroom Adjusted Standard Quality Recent-Mover Gross Rent
    Cincinnati, OH-KY-IN MSA $723 $728
    Area Ratio Recent-Mover Adjustment Factor
    Grant County, KY HUD Metro FMR Area $728 / $723
    =1.007
    1.007 ≥ 1.0 Use calculated Recent-Mover Adjustment Factor of 1.007
  4. The calculation of the relevant CPI Update Factors for Grant County, KY HUD Metro FMR Area is as follows: HUD updates the 2013 intermediate rent with the ratio of the annual 2014 local or regional CPI to the annual 2013 local or regional CPI to establish rents as of 2014.
    Update Factor Type
    CPI Update Factor 1.0296 Local CPI
  5. The calculation of the Trend Factor is as follows: HUD uses the forecasted change in national gross rents from 2014 to 2016. This makes Fair Market Rents "as of" FY2016. For more information on the calculation of the trend factor, please see here.
    Trend Factor
    1.0457
  6. The FY 2016 2-Bedroom Fair Market Rent for Grant County, KY HUD Metro FMR Area is calculated as follows:
    Area ACS2013 5-Year Estimate Recent-Mover Adjustment Factor Annual 2013 to 2014 CPI Adjustment Trending 1.0457 to FY2016 FY 2016 2-Bedroom FMR
    Grant County, KY HUD Metro FMR Area $673 1.007 1.0296 1.0457 $673 * 1.007 * 1.0296 * 1.0457=$730
  7. In keeping with HUD policy, the preliminary FY 2016 FMR is checked to ensure that is does not fall below the state minimum.

    Area Preliminary FY2016 2-Bedroom FMR FY 2016 Kentucky State Minimum Final FY2016 2-Bedroom FMR
    Grant County, KY HUD Metro FMR Area $730 $622 $730 ≥ $622 Use Grant County, KY HUD Metro FMR Area FMR of $730

Final FY2016 Rents for All Bedroom Sizes for Grant County, KY HUD Metro FMR Area

The following table shows the Final FY 2016 FMRs by bedroom sizes.

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

Final FY 2016 FMRs By Unit Bedrooms
  Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
Final FY 2016 FMR $473 $545 $730 $1,024 $1,105

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.

Permanent link to this page: http://www.huduser.gov/portal/data sets/fmr/fmrs/FY2016_code/2016summary.odn?&year=2016&fmrtype=Final&selection_type=county&fips=2108199999

Other HUD Metro FMR Areas in the Same MSA

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Prepared by the Economic and Market Analysis Division, HUD. Technical problems or questions? Contact Us.