Poverty rate estimates are calculated from estimates of the population in poverty (POVPOP) and the population for which poverty status has been determined (POVBASE). The Census Bureau's Small Area Income and Poverty Estimate (SAIPE) program provides county-level estimates of the population in poverty (CNTYPOVPOP) and poverty rate (CNTYPOVRATE) (the estimates of county population for whom poverty status has been determined are derived as CNTYPOVBASE = CNTYPOVPOP/CNTYPOVRATE). HUD poverty rate estimates are calculated using: the SAIPE data; 1990 census data on city, county, and minor civil division (MCD) poverty population and total population; and city, county, and MCD population estimates for 1993, 1995, 1997, and 1998.

Poverty rates estimates for cities are calculated as follows:

1. The portion of each county's 1990 poverty population living in each city (some cities have parts in two or more counties) is calculated. This result is multiplied by the 1993, 1995, 1997, and 1998 estimates of CNTYPOVPOP to get estimates of CITYPOVPOP (in cases where cities cross county boundaries, the estimates for individual city parts are summed).

2. The CITYPOVBASE is determined by adjusting 1993, 1995, 1997, and 1998 city population estimates by the ratio of 1993, 1995, 1997, and 1998 CNTYPOVBASE to 1993, 1995, 1997, and 1998 county population (cities in more than one county have the adjustment made separately for each part based on the 1990 population distribution of city parts across counties so that a weighed average adjustment is created and applied).

3. City poverty rate is CITYPOVPOP/CITYPOVBASE.

Poverty rate estimates for Core Based Statistical Areas (CBSAs) New England County Metropolitan Areas (NECMAs) and county-based Metropolitan Statistical Areas and Primary Metropolitan Statistical Areas (MSAs/PMSAs) outside of New England are derived by summing CNTYPOVPOP and CNTYPOVBASE estimates for all counties in each metropolitan area providing MAPOVPOP and MAPOVBASE. Metropolitan area poverty rate is then MAPOVPOP/MAPOVBASE.

In the New England states, MSAs and PMSAs are defined based on Minor Civil Divisions (MCDs) which are subdivisions of counties. Procedures similar to those used to compute POVPOP and POVBASE in cities are used to allocate county poverty estimates to MCDs (MCDPOVPOP and MCDPOVBASE). Then these estimates are summed for the MCDs in each metropolitan area providing MAPOVPOP and MAPOVBASE. Metropolitan area poverty rate is then MAPOVPOP/MAPOVBASE.

Suburb poverty rates are estimated by calculating suburban POVPOP and suburban POVBASE as the total for metropolitan area less the sum of data for all central cities in the metropolitan area (SUBPOVPOP = MAPOVPOP - S ^N_iCITYPOVPOP_i,
SUBPOVBASE = MAPOVBASE - S ^N_iCITYPOVBASE_i). Suburban poverty rate is then SUBPOVPOP/SUBPOVBASE.

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