How we set a fair price
Every Fair Rate Index range comes from public labor data, a written model of the job, and real prices people actually paid. Each one shows what it rests on, which version of the model produced it, and how sure we are. Nobody can pay to change a number.
Current version: v0.1
Today’s ranges are national baselines for each job, adjusted by a state cost index, and every one is labeled Modeled. The full method below, with trade-by-trade labor rates for every state and metro, rolls out in v0.2. Every change is recorded in the version history.
What a fair range means
A fair range is the price band a qualified, licensed pro would typically charge for a defined job in your area, including labor, materials and normal overhead and profit.
The low end is the 25th percentile of expected prices and the high end is the 75th, so the range covers the middle half. A price above it is not automatically unfair. It means the quote should come with a reason, such as an emergency call, difficult access, a code upgrade or premium materials.
Each range covers one defined job, for example “replace a 50-gallon gas water heater, like for like.” The definition lists what is included and what is not, so you can compare a quote line by line.
Where the numbers come from
Every range starts from public labor data and a job model, then gets corrected by real prices as we collect them.
Public labor data
Hourly wages for each trade come from the U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics, by state and metro area. A worker’s wage is not what a customer is billed, so we convert it to a billed rate with a multiplier for overhead and profit, published here with v0.2.
Job models
Each job is written out as a range of labor hours, a materials list with dated retail prices, and any standard trip or diagnostic fee. Labor hours times the billed rate, plus materials and fees, gives the modeled range.
Real prices
Homeowners, pros and partners can submit quotes and paid invoices. Each one goes through a plausibility check against the current range and a duplicate check; when paperwork comes with it, we check that too. We remove personal details and use it to test and correct the model. As real prices accumulate for a job and region, they outweigh the model.
Paid a pro recently? Submit the invoice or email it to hello@fairrateindex.com. We strip your personal details and use the price to sharpen the range for your area.
We do not copy price data from other cost guides or lead-generation sites.
The role of AI. We use AI to help draft job definitions, organize materials lists and flag ranges that look out of line with the data. AI never sets a published number on its own. Every range traces back to the sources above. In paid reports and plans, AI reads the documents you upload and matches each item to a job in the index; the price ranges always come from the index, and anything it can’t match is listed for on-site pricing.
The multiplier for each trade is published here with v0.2.
How sure we are
Every range carries one of three labels. In v0.1 every range is Modeled; as verified prices arrive, each range will also show how many back it, and move up a level only when it meets the published threshold.
| Label | What it rests on | How to use it |
|---|---|---|
| Modeled | Public labor data and the job model only | A solid starting point; expect real quotes to vary more |
| Calibrated | The model, checked against a small set of verified local prices | Reliable for comparing quotes |
| Observed | Mostly verified real prices for that job and region | Our strongest benchmark |
Regions and updates
Ranges are set by state, and by metro area where the wage data supports it. Where a metro has too little data, the state range applies and the page says so.
Labor rates update once a year with new Bureau of Labor Statistics wage data. Materials prices are rechecked every quarter. Verified real prices feed in as they arrive, and ranges refresh monthly. Every range shows its model version, and from v0.2 the date it was last updated.
Independence and corrections
The index is free to use. Some businesses pay for tools and data access built on it, but no customer, contractor or sponsor can change a range or see one early.
If you think a range is wrong, send the evidence — a quote, an invoice or a source — to hello@fairrateindex.com. We review every submission, and every change is recorded with what changed, when and why.
What a range is not
A range is a benchmark, not a quote. Many jobs can only be priced after a pro sees them, and yours may differ from the defined job in size, access, materials or local code requirements.
Ranges assume normal business hours and licensed, insured work where the trade requires it. They are not legal, financial or insurance advice, and they do not rate any individual contractor.