Below are step by step instructions on how to utilize the VWB Capture Rate Calculator. A video has also been developed that shows a tutorial for the calculator. If you would like to view the tutorial, click here.
Steps
Purchasing the Capture Rate Calculator for a market area
Entering the site information
Viewing and recalculating the capture rate and changing the market area
Removing and restoring Census Tracts
Saving and accessing your market areas
Purchasing the Capture Rate Calculator for a market area
First, you will need to assemble information that you would like to analyze in the capture rate. You will need to note the following information before you begin:
- A street address or intersection of your site location
- The number of units in your development
- Whether your project is market-rate or Tax Credit
- Whether the project is family or senior-restricted
- The maximum number of persons per household allowed for the largest unit type. This establishes the upper income limit for the capture rate calculation for market-rate properties the user can specify the minimum income limit for Tax Credit properties and up to $100,000 for market-rate properties.
- The lowest gross rent at your site. The gross rent is the collected rent plus the estimated cost of all utilities. This will establish the lower income limit of the capture rate calculator. For market-rate properties, the user can specify the lower income limit for the property directly.
Once you have this information, you are ready to begin.
First, choose a street address, any address in the United States or in any of its territories. Enter the chosen address into the Search Database field; be sure to include the city and state, or the zip code.
Once the address is entered, the VWB Capture Rate Calculator will display a map with the address that you entered in the geographic center. Be sure to verify that the displayed location is the area that you want to analyze.
Next, on the page with your address map, click “continue” and the HUD geography used for affordable housing income limits is displayed. From here, click “continue” or start over.
Next, on the page with your address map, click “continue” and the HUD geography used for affordable housing income limits is displayed. From here, click “continue” or start over.
After clicking “continue” again, a drop-down, multiple-choice selection field will appear that prompts you to designate the suitable radial distance from your chosen address.
Choose a radius of from two to 10 miles. Be certain that you enter the largest radius you believe will encompass your market area. Due to processing limitations, you will be limited to the inclusion of 125 Census Tracts. If your market area exceeds 125 tracts, you will be asked to modify your radius so that it does not. You will be able to modify the tracts included in the market area later. Click “continue.” A map will then be displayed that illustrates all the U.S. Census Tracts that are contiguous to your selected radial distance.
Since most in-depth market evaluations rarely use a radius to identify market areas, the VWB Capture Rate Calculator offers users the opportunity to modify the market area displayed as many times as necessary. If the Census Tracts displayed do not encompass the area you wanted to analyze, click “change radius” to redefine a larger area. If you are satisfied with the area, click “continue.” Remember, however, you will be limited to 125 tracts.
At this point, you will be asked to purchase a report. Note that once you have bought a report, you will not be able to modify the radius. However, you will be able to remove Census Tracts that you do not want to be included in your capture rate calculation. Your radius will be saved for 12 months. After that time, it will not be available.
The next screen will prompt you for the information about your site that was collected above.
Enter the site information:
- Number of units
- Market-rate or Tax Credit
- If market-rate, you will need to specify the income range to analyze:
Enter the minimum income acceptable to qualify the base of tenants for your project (typically tenants are qualified at a minimum rate of a 27% collected rent to income ratio).
Enter the maximum income acceptable to qualify the base of tenants for the project. This value will range between $1 and $100,000. (The maximum income this tool can calculate is $100,000 as there are few renters with incomes above $100,000).
This is the only information required about the project necessary to calculate the capture rate if the subject is a market-rate property. Skip the next section since this focusses with Tax Credit properties. - If Tax Credit, you will next need to enter to maximum target AMHI level. (If your property qualifies tenants up to 60% AMHI, enter 60% here. If only 50%, enter 50% and so on.)
Next, enter the lowest proposed gross rent of the property. (Gross rent is used because it includes the cost of all utilities regardless of payer.)
Next, specify if you are analyzing a family project or a senior project. Note that if a senior property is the subject, you have the option to calculate either senior renters or all seniors; this includes both renters and homeowners. The senior homeowners are important in areas where there is a high capture rate of senior qualified renters. Note at this time, senior calculations are for households age 55 and over.
Viewing and recalculating the capture rate and changing the market area
The next section displays the income range qualified for your project. To the right of this range is the capture rate for your project (the number of income-qualified households your project must attract to occupy all of the units).
You can adjust your project details to recalculate the capture rate. Simply change the information in the “Enter Site Information” box and click on the “ReCalc” button.
Removing and restoring Census Tracts
At this point, you can modify the displayed Census Tracts to correspond to a market area. This is accomplished by manipulating the map displaying the Census Tracts.
To remove a Census Tract from your market area, move the cursor over the Census Tract and click once. A bubble will display the Census Tract number, the current number of qualified households and the median household income of the tract. A remove tract selection will also be displayed. Click this once with the cursor. You will note that the tract is no longer highlighted. In addition, that tract is highlighted in gray on the table to the right. Although the tract is still included in this table, the number of qualified households is deducted from the totals noted at the bottom of the table. Your resulting capture rate is also adjusted automatically. This allows the user to see the effect of the inclusion of certain Census Tracts in the calculation.
To restore the Census Tract to the totals and display it again on the map to the left, move the cursor to the box next to the highlighted Census Tract and click once. The gray highlight is also removed. Continue this process until you are satisfied with your market area. Market areas are influenced by physical boundaries such as interstate or railroad right-of-ways and rivers, as well as changes in the socioeconomic composition of areas.
Saving and accessing your market areas
At this point, you can modify the displayed Census Tracts to correspond to a market area. This is accomplished by manipulating the map displaying the Census Tracts.
To save your modified market area, click on the Save button to the right of the map. You will be asked to name your modified market area. Once saved, you can recall the market area used in your analysis at any time for up to one year. To access your saved market areas, view your account information by clicking on “Account” on toolbar on the upper right.
May take up to a mintue.
