Rent Adjustment Types. Your HAP Contract will determine the rent adjustment method you should use. If your contract is expiring, please go to our Contract Renewal Options page to determine your renewal option for the upcoming year.

Amend Rents Checklist

OCAF Rent Adjustments

  • The OCAF (Operating Cost Adjustment Factor) is a factor that is established by HUD, and is applied to the existing contract rent (less the portion of the rent that is paid for debt service).
  • OCAF Values are determined by HUD annually and are published in the Federal Register. The OCAFs are usually published in February of each year. Properties with contracts expiring after February 11th are subject to the new OCAF values.
  • The Auto OCAF was created to streamline the rent increase process. The Auto OCAF will automate the process of an OCAF rent increase for Section 8 contracts in Amend Rent years. Owners/Agents will no longer need to calculate and supply the OCAF worksheet as part of the Amend Rents package.

Submission Requirements for OCAF Rent Increases:

  • OCAF Worksheet or Signed Auto OCAF letter (sent to Owner/Agent via email, 150 days before funding expiration)
  • Utility Allowance Analysis (if applicable)
  • Verification of Annual Project Debt Service (ex. monthly mortgage statement, Promissory note) Debt Service = Principal + Interest + MIP – IRP Subsidy (if applicable)

Need to know how to fill out an OCAF Worksheet? Click here.

Options that allow an OCAF/Auto OCAF to be submitted:

  • Option 1 – During amend rents only years, eligible for auto OCAF (unless a new RCS is needed)
  • Option 2 – During contract renewals years & eligible for auto OCAF in amend rents only years (unless a new RCS is needed)
  • Option 3 – During amend rents only years, eligible for auto OCAF
  • Option 4 – During contract renewals (accompanied by a budget per the lesser of test) & eligible for auto OCAF in amend rents only years
  • Option 5 – During contract renewals (if applicable – see POA or Use Agreement)   *(Option 5A, Demos with restructured loans only, Eligible for Auto OCAF for Life of Use Agreement)(Options 5B are not eligible for an auto-OCAF)

 Budget Based Rent Adjustments