USPS Revamps 30-Year-Old Facility Rent Math
Published Date: 1/21/2025
Proposed Rule
Summary
The Postal Service wants to update how it calculates costs for renting its facilities, replacing a method that’s been around since 1992. This change affects how space costs get split among postal products and could impact future reports and pricing. If you have thoughts, you’ve got until February 27, 2025, to share them with the Postal Regulatory Commission.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Postal rental costing method update
The Postal Service proposes replacing a 1992 sampling-based rental valuation with a simplified method that uses Fiscal Year 2019 eFMS rental cost data for all active facilities. The proposal removes subjective inputs such as nationwide capitalization rates and rent-change factors and would apply to the distribution of space provision costs in periodic reports.
Estimated product cost decreases
The Postal Service estimates that applying the proposed rental-cost method to Fiscal Year 2023 data would have reduced attributable costs: Market Dominant products by 2.12 percent and Competitive products by 1.53 percent. These percentage changes are presented as the proposal's estimated impact on product-specific costs for FY 2023.
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Key Dates
Department and Agencies
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