In “Alternative Methods For Calculating Fair Market Rents (FMRs) in Rental Markets with Rapidly Rising Rents,” the researchers examined two methods for altering FMR calculations. First, they identified a sample of areas that experienced high rent growth as measured by the American Community Survey (ACS). They then examined inflation factors calculated from measures of rent provided by Axiometrics (now RealPage), a private firm, finding that there was a positive correlation between changes in the Axiometrics rent data and rents measured in the ACS. The authors also examined the use of price-to-rent ratios to predict rents, leveraging the fact that home purchase price data are often more widely available than rent data. They calculated two versions of price-to-rent ratios, one using Zillow data, and one using public-sector data from the ACS and Federal Housing Finance Administration House Price Index Data.

 Foreword

Related FMR studies from 2023:

Click the link to access Alternative Fair Market Rents for Local Housing Markets

Click the link to access Fair Market Rents Trend Component Modeling Technical Report