Key HUD Updates for HOTMA Compliance
The 2026 inflationary adjustments and passbook rate from HUD are now official and will take effect January 1, 2026. These figures are mandatory for program administrators implementing Sections 102 and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA).
Published annually, these adjustments impact calculations related to income, assets, deductions, and imputed returns across a wide range of HUD programs. The figures apply to income examinations conducted by Public Housing Agencies (PHAs), Multifamily Housing (MFH) Owners, and Grantees.
New 2026 HUD Values: What Changed?
HUD’s 2026 update includes revised thresholds, deductions, and a new passbook rate—all outlined in Table 1 and Table 2 of the official release.
What’s the 2026 Passbook Rate?
HUD set the 2026 passbook savings rate, which the industry uses to impute income from household assets, at 0.40%. This rate applies to all HOTMA-covered programs and is based on the FDIC National Deposit Rate for savings accounts.
Refer to Notice PIH 2023-27 / H 2023-10 for the full methodology: Download the joint notice (HUD.gov)
Which Programs Are Affected?
The following programs must apply the updated 2026 inflationary adjustments and passbook rate figures beginning January 1, 2026, if implementing HOTMA Sections 102 & 104:
- Public Housing
- Section 8 Project-Based Rental Assistance (PBRA)
- Housing Choice Vouchers (HCV)
- Section 8 Mod Rehab / SRO
- 202/8, 202/811 PRAC
- 236 IRP
- 811 PRA
- SPRAC
- HOME and HOME-ARP
- Housing Opportunities for Persons With AIDS (HOPWA)
- Housing Trust Fund (HTF)
HUD does not require programs not yet implementing HOTMA rules to use these new figures.
Timeline for Compliance
HUD follows a consistent annual schedule:
- August: HUD calculates the inflation factor and releases updated values.
- January 1: Revised values and passbook rate become effective.
- Methodology changes: HUD will only solicit public comment if the methodology changes, not for annual updates.
HUD calculated the 2026 inflationary adjustments and passbook rate using the same method published in the Federal Register (89 FR 27440).
Action Steps for Owners, PHAs, and Grantees
- Review and apply the 2026 thresholds and passbook rate.
- Update systems and software that calculate income and asset values.
- Train staff on regulatory changes and updated values.
- Implement changes by January 1, 2026 for all applicable income examinations.
- Use self-certification only when net family assets are below $52,787.
Questions? Contact HUD directly: mfh_hotma@hud.gov
