RENT - COLA - CPI

ABOUT COLA

     Cost of Living Allowance (COLA) is what you receive, some years, from the Federal Government to help your monthly Social Security Earned Entitlement increase to keep pace with inflation.  This usually referred to as the COLA.


     A COLA is also given to recipients of Federal Government retirements, by separate check, each month. 

 

     But, it is only given in years where the inflation rate is sufficiently high to cause that to happen.


   From 2004 thru 2014

      Inflation was               20% 

      Some rents rose         38%

        


     


CPI-CONSUMER PRICE INDEX

     The Bureau of Labor Statistics (BLS) not only conducts census surveys in America, they also collect data, on an ongoing basis, about the economy.  This helps determine the rate of inflation.

     They survey a 'market basket of goods and services' from every major metropolis.  

     From these ongoing surveys, they can determine what is the 'cost of living' in these areas.

     They measure our household budget items like 1)Transporation; 2) Medical; 3) Groceries; 4) Rent; 5)Entertainment, and so on.

     They publish the results monthly.  At the end of September each year, the Federal Government looks at the costs for the past 12 months, and determines if they have risen sufficiently to trigger a COLA.

     


DETERMINING A FAIR RENT INCREASE

CPI MARKETBASKET OF GOODS & SERVICES

  An example of computing fair space rent increase based on the CPI Pie Chart: 

    The CPI was 2% in Oct 2017.

     8% of CPI is for space rent.

     8% of 2% (CPI) = .0016

     Rent is $600 a month.

     $600 x .0016 = 96 (96 cents)

  This is a fair rent increase, based on the above conditions.

   

   The data on our Chart is from the BLS  (Bureau of Labor Statistics) for the Western Region B/C for CPI-U.  This is the Region in which Sacramento is located and is the Urban Wage-earner group upon which our Social Security is based.


   Cost of living is higher in areas like San Francisco, Oakland and San Jose.  Thus, their expenditures on such a graph will be a bit different from this one, above.


  The CPI consists of 8 different categories of expenses for the average family.  We have expanded that count to show all four (4) elements of the Housing category.


   For mobilehomeowners in a space-rental park, we must extract and separate our house from their land.


   In modest neighborhoods, financially compatible with mobilehomes, land value is about 25% of the entire home-land lot.


   Therefore, we conclude that the space rent of the lot to be equivalent to 25% of the CPI allocation for housing (shelter).


 (Please refer to our 'Narrative to accompany the CPI Pie Chart, soon to be found elsewhere on this website.) 

The Only Statewide Manufactured Homeowner Organization

GSMOL, our most important statewide Manufactured Home-owner organization in California.

   If you life in a mobilehome (or manufactured home), membership in GSMOL is vital to your well-being.

   GSMOL has a lobbyist in Sacramento at the State Capitol and a Corporate Attorney to advise us in legal terms.

   Your park owners use your monthly rent to hire attorneys.

   You can't afford not to support and belong to GSMOL for only $25 a year!

   Join today if you are not a member!


    GSMOL.org   or call  800-888-1727