FFIEC Median Family Income Estimates
The Federal Financial Institutions Examination Council (FFIEC) has just released its 2023 update to the MSA Median Family Income (MFI) estimates.
The latest data is available here at gisbanker.com - Click here to download an excel file by MSA download here
The Median Family Income (MFI) data is published annually by the FFIEC and provides median family income estimates for Metropolitan Statistical Areas (MSAs) and non-MSAs across the U.S. This information is crucial for financial institutions to determine community investment opportunities under the Community Reinvestment Act (CRA) and to help provide insights into regional economic trends for federal regulators.
A second release of the flat file later this year will include demographics for the four island areas, followed shortly thereafter by the final 2022 flat file release. This release does not include boundary changes from OMB Bulletin 23-01 (or any future bulletins for 2023); these will be included in the 2024 release next year.
Why Use FFIEC Median Family Income Data?
Approximately, 83 percent of people in the United States now call metropolitan areas home, while 10 percent live in micropolitan areas.
The MFI data is published annually by the FFIEC, provides median family income estimates for Metropolitan Statistical Areas (MSAs) and non-MSAs across the U.S. This information is crucial for financial institutions to determine community investment opportunities under the Community Reinvestment Act (CRA) and to provide insights into regional economic trends.
Median Family Income Defined
The FFIEC Median Family Income (MFI) data represents an estimated MFI value that corresponds to the year when loan application data are collected. The Federal Financial Institutions Examination Council (FFIEC) calculates this data[1%5E].
From the year 2012 and onwards, the FFIEC handles the calculation of the MFI data. Prior to 2012, the MFI data were calculated by the Housing and Urban Development (HUD)[1%5E].
The estimated MFI for each census tract is calculated based on the FFIEC estimate for the Metropolitan Statistical Area/Metropolitan Division (MSA/MD) or non-MSA/MD area where the census tract is located[2%5E].
Please note that these figures represent estimates and change annually[2%5E].
Sources:1. https://www.ffiec.gov/Medianincome.htm and 2. https://www.ffiec.gov/census/htm/2020CensusInfoSheet.htm
CRA Requirements
The CRA requires financial institutions and their regulators to evaluate their performance in meeting credit needs within their communities. To do so, they must consider a variety of factors such as the number and amount of loans they make in low- and moderate-income neighborhoods and how well those loans perform.
If you're a financial institution or community planner, this data will be of particular interest to you! Here are some things you can do with it:
- Analyze your market area for changes in economic growth patterns, including population growth, unemployment rate changes, and shifts in income levels
- Gauge whether there are opportunities for new lending programs that take into account local economic conditions
- Identify new areas for outreach efforts—especially if you're looking for ways to increase your CRA score or improve your Community Development Lending statistics
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