Page 1 of 8 FY 2013 Fair Market Documentation System The Final FY 2013 Fort Bend County FMRs for All Sizes The following table shows the Final FY 2013 FMRs by unit bedrooms for Fort Bend County, Texas. Final FY 2013 FMR Efficiency Final FY 2013 FMRs By Unit s One- Two- Three- Four- $636 $765 $945 $1,290 $1,595 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 (Fort Bend County FY2012 FMR Documentation system). No changes have been made to these OMBdefined areas since the publication of Final FY2012 FMRs NOTE: This is a 50 th Percentile Final FY 2013 FMR area as established by HUD regulations. To see the Final 40 th Percentile s for Fort Bend County please click here. Fort Bend County, Texas is part of the Houston-Baytown-Sugar Land, TX HUD Metro FMR, which is comprised of the following counties: Chambers County, Texas; Fort Bend County, Texas; Galveston County, Texas; Harris County, Texas; Liberty County, Texas; Montgomery County, Texas; San Jacinto County, Texas; and Waller County, Texas. All information here applies to the entirety of the Houston-Baytown-Sugar Land, TX HUD Metro FMR. Fair Market Calculation Methodology - Updated for FY2013 Fair Market s 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. In areas where the 2006-2010 5-year ACS 2-bedroom adjusted standard quality gross rent estimate is less than its respective margin of error, the state non-metro estimate of 2-bedroom adjusted standard quality gross rent is used.
Page 2 of 8 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, Entire Metropolitan (for Metropolitan Sub-s), State Metropolitan Portion, Entire State, and Entire US; for non-metropolitan areas, the order of geographies examined is: FMR, 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. s 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 Step-by-Step Process Houston-Baytown-Sugar Land, TX HUD Metro FMR Results 1. The following are the 2010 American Community Survey 5-year 2- Standard Gross estimate and margin of error for Houston-Baytown-Sugar Land, TX HUD Metro FMR. The following calculations are based on data for the entirety of the OMB-defined metropolitan area of Houston-Sugar Land-Baytown, TX MSA and not Houston-Baytown-Sugar Land, TX HUD Metro FMR because neither the 2000 Census 40 th Percentile Base nor the 2000 Census Median Family Income differs from the official metropolitan area's 2000 Census 40 th Percentile Base or 2000 Census Median Family Income by at least 5 percent; however, such differences do exist for other HMFAs within Houston-Sugar Land-Baytown, TX MSA. For additional information on area definitions please see the Houston-Baytown-Sugar Land, TX HUD Metro FMR FY2012 FMR Documentation system. ACS 2010 5-2- Standard ACS 2010 5-2- Standard Ratio Result
Page 3 of 8 Gross Gross Margin of Error 0.005 < 1 Houston- Baytown-Sugar Land, TX HUD Metro FMR $850 $4 $4 / $850 0.005 Use ACS 2010 5- Houston-Baytown-Sugar Land, TX HUD Metro FMR 2- Standard Gross Since the ACS 2010 Margin of Error Ratio is less than 1, the ACS 2010 Houston-Baytown- Sugar Land, TX HUD Metro FMR value is used for the estimate of 2- Standard Gross : ACS 2010 Houston-Baytown-Sugar Land, TX HUD Metro FMR $850 2. A recent-mover adjustment factor is applied based on the smallest area of geography which contains Houston-Baytown-Sugar Land, TX HUD Metro FMR and has an ACS 2010 1-year Standard Recent-Mover estimate with a Margin of Error Ratio that is less than 1: ACS 2010 1-2- Standard Recent- Mover Gross ACS 2010 1-2- Standard Recent- Mover Gross Margin of Error Ratio Result 0.018 < 1 Houston-Baytown- Sugar Land, TX HUD Metro FMR $834 $15 $15 / $834 0.018 Use ACS 2010 1- Houston-Baytown- Sugar Land, TX HUD Metro FMR 2- Standard
Page 4 of 8 Recent-Mover Gross The smallest area of geography which contains Houston-Baytown-Sugar Land, TX HUD Metro FMR and has an ACS 2010 1-year Standard Recent- Mover estimate with a Margin of Error Ratio that is less than 1 is Houston-Baytown- Sugar Land, TX HUD Metro FMR. 3. The calculation of the relevant Recent-Mover Adjustment Factor for Houston-Baytown- Sugar Land, TX HUD Metro FMR is as follows: ACS 2010 5- Houston-Baytown-Sugar Land, TX HUD Metro FMR ACS 2010 5-40th Percentile 2- Standard Gross ACS 2010 1-40th Percentile 2- Standard Recent-Mover Gross $794 $834 Although Houston-Baytown-Sugar Land, TX HUD Metro FMR is a 50 th percentile area for 2013, the Recent-Mover Adjustment Factor is based on 40 th percentile rents in order to maintain consistency across calculations. Houston-Baytown-Sugar Land, TX HUD Metro FMR Ratio $834 / $794 1.0504 Recent-Mover Adjustment Factor 1.0504 > 1.0 Use calculated Recent- Mover Adjustment Factor of 1.0504 4. The calculation of the relevant CPI Update Factors for Houston-Baytown-Sugar Land, TX HUD Metro FMR 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.
Page 5 of 8 Update Factor Type CPI Update Factor 1.0164 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 midpoint of FY 2013. This trend factor is determined by taking the average annual growth rate in the national 1- Median Gross between the 2005 and 2010 American Community Surveys. ACS 2005 U.S. 1- Median Gross ACS 2010 U.S. 1- Median Gross Average Annual Change in U.S. 1- Median Gross 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- Fair Market for Houston-Baytown-Sugar Land, TX HUD Metro FMR is calculated as follows: ACS 2010 5- Estimate Recent- Mover Adjustment Factor Annual 2010 to December 2011 CPI Adjustment Trending 3.27% for 1.25 years FY 2013 2- FMR Houston- Baytown-Sugar Land, TX HUD Metro FMR $850 1.0504 1.0164 1.0410 $850 * 1.0504 * 1.0164 * 1.0410 $945 7. In keeping with HUD policy, the preliminary FY 2013 FMR is checked to ensure that is does not fall below the state minimum for Texas: Preliminary FY 2013 FY 2013 Texas Final FY 2013
Page 6 of 8 Houston-Baytown- Sugar Land, TX HUD Metro FMR 2- FMR State Minimum $945 $626 2- FMR $945 > $626 Use Houston-Baytown- Sugar Land, TX HUD Metro FMR FMR $945 Final FY 2013 s for All Sizes for Houston-Baytown-Sugar Land, TX HUD Metro FMR The following table shows the Final FY 2013 FMRs by bedroom sizes. The FMRs for units with different numbers of bedrooms are computed from the ratio of the 40 th percentile adjusted standard quality gross rent for the different unit sizes to the 40 th percentile adjusted standard quality 2- gross rent from the 2006-2010 5-year ACS. These Ratios are applied to the Final FY 2013 2- FMR to determine the Final FY 2013 FMRs for the different size units. Click on the links in the table to see how the bedroom rents were derived. Final FY 2013 FMRs By Unit s Final FY 2013 FMR Efficiency One- Two- Three- Four- $636 $765 $945 $1,290 $1,595 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 50 th Percentile Final FY 2013 FMR area as established by HUD regulations. Under current regulations, the 50 th percentile status of Fort Bend County will be re-evaluated in 2015. To see the Final 40 th Percentile s for Fort Bend County please click here. Data file last updated Tue., Apr 30, 2013. Press below for a permanent link to this page
Page 7 of 8 Click here for permanent link FY 2013 40 th Percentile s for Other 50 th Percentile s Select a Final FY 2013 50 th Percentile FMR to see its 40 th Percentile s: Houston-Baytown-Sugar Land, TX HUD Metro FMR Select 50th Percentile FMR Other HUD Metro FMR s in the Same MSA Select another Final FY 2013 HUD Metro FMR that is a part of the Houston-Sugar Land-Baytown, TX MSA Austin County, TX HUD Metro FMR Select Metropolitan FMR Press below to select a different county within the same state (same primary state for metropolitan areas) Anderson County, TX Select a new county or Press below to select a different state Select a new state or Select a Final FY 2013 Metropolitan FMR : Houston-Baytown-Sugar Land, TX HUD Metro FMR Select Metropolitan FMR
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