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Benefit-Cost Analysis Resource Hub

These resources are provided by VEM Hazard Mitigation staff and official FEMA-created material. This is a living resource hub, please contact the Hazard Mitigation team if you have resources that would be helpful to share here when completing a Benefit-Cost Analysis (BCA).

While BCAs may first seem intimidating, keep in mind that the goal of the BCA is to document that your proposed mitigation project is truly cost effective and therefore a wise use of taxpayer funds. A project is cost effective if the project's benefit-cost ratio (BCR) is greater than or equal to 1.0. The key to a BCA is to sufficiently document the data you use in your BCA. The resources below are aimed to assist you in finding useful data for the BCA, and in successfully documenting that data. 

For more information about FEMA Hazard Mitigation Assistance contact: Vermont Hazard Mitigation Program at VEM.

Hazard Mitigation BCA Development Technical Assistance Opportunity

Vermont Emergency Management has hired a contractor to support the development of Benefit-Cost Analyses (BCAs) under the upcoming DR-4532 round of the Hazard Mitigation Grant Program (HMGP). Just over $11 million is available for project applications under this round with a State deadline of June 30, 2022.

We are currently soliciting projects that are ready to develop an subapplication but missing a BCA – i.e. necessary designs are completed for a culvert or bridge upsizing, a floodplain restoration project, floodproofing of a municipal building, or other eligible mitigation project.

If you have a project that you think might be a good fit, please fill out the BCA Assistance Intake Form and return it to with the subject: BCA Development Application.

We will be accepting applications on rolling basis until we have used all available funds. Submit applications as soon as possible to allow for time to complete the BCA before the June 30 2022 HMGP deadline.

Important - Benefit Cost Analysis Waivers

In 2013 FEMA issued a memo indicating that a Benefit-Cost Analysis (BCA) is no longer needed for certain building acquisition or elevation projects. This change eliminated a major barrier for proposals seeking funding through the FEMA Flood Hazard Mitigation Assistance programs.

In September of 2021 FEMA updated the acquisition and elevation pre-calculated benefit values originally set in 2013. The new inflation-adjusted values are $323,000 for acquisitions and $205,000 for elevations.  For more information, see the updated memorandum.

In March of 2022 FEMA released an additional memo to establish the use of a pre-calculated benefit that demonstrates cost-effectiveness for Repetitive Loss (RL) and Severe Repetitive Loss (SLR) acquisition (buy-out) projects that are located outside of the designated Special Flood Hazard Area (SFHA). For more information please view the 2022 memo for RL and SLR outside of the SFHA.

Additionally, FEMA has established a pre-calculated benefit for certain hospital generator projects. For more information, including how to determine if a hospital is in an urban or rural area, see the hospital generator pre-calculated benefits memorandum.

Benefit-Cost Analysis (BCA) Software

Download the current BCA software: BCA 6.0 (free)

General Information

  • FEMA's BCA Website
  • Introduction to the FEMA BCA (VEM Powerpoint, 2014) - A brief what, who, and how of BCAs; what a BCA is, who (types of HMGP projects) needs it, and how to create it.
  • FEMA BCA General Information
    • BCA Reference Guide (FEMA, 2009)
    • BCA Reference Guide Supplement (FEMA, 2011) - This document provides extremely useful how-to information for determining Recurrence Intervals, documenting historical damage, documenting “loss of service” for damaged buildings and infrastructure (including critical facilities), etc.
  • Benefit Cost Analysis Re-engineering (FEMA, May 2009) - The Benefit Cost Analysis Re-engineering report is a great resource for review and understanding of the methodology behind the FEMA Damage Frequency Assessment (DFA). There is also a sample BCA in this report, starting on page 39.

Project-Specific Information

Documenting and Determining Recurrence Intervals


Hazard Mitigation Grant Program Appeals Database - tracks the status of appeals under this grant program.

The Benefit-Cost Analysis (BCA) Helpline

FEMA provides BCA Technical Assistance through The BCA Helpline