2027 COLA Announced
The Social Security Administration (SSA) has announced a 3.6% cost-of-living adjustment (COLA) for 2027. The increase will affect millions of Americans who receive Social Security and Supplemental Security Income (SSI) benefits.
The adjustment takes effect in January 2027. Here’s what the increase means for beneficiaries and what affordable housing professionals should keep in mind.
How Much Will Social Security Increase in 2027?
Social Security benefits will increase by 3.6% in 2027, compared with the 2.8% adjustment beneficiaries received in 2026.
According to the SSA, the increase will raise the average monthly retirement benefit by approximately $75.
However, individual increases will vary based on each person’s current benefit amount and applicable deductions.
The annual COLA helps Social Security and SSI payments keep pace with inflation. The SSA calculates the adjustment using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks changes in the prices of everyday goods and services.
When Will the 2027 COLA Take Effect?
Social Security beneficiaries will see the increase in payments beginning in January 2027.
Meanwhile, SSI recipients will receive their first adjusted payment on December 31, 2026, because January 1 is a federal holiday.
The SSA will also notify beneficiaries of their updated payment amounts. Recipients can review their notices through their personal my Social Security accounts or through notices mailed by the agency.
For additional information, visit the SSA’s official COLA webpage.
What Does the 2027 COLA Mean for Affordable Housing?
For households receiving federal rental assistance, an increase in Social Security or SSI benefits may affect reported household income.
In HUD-assisted multifamily housing, Social Security and SSI benefits generally count as income when determining eligibility and calculating a household’s share of rent.
However, a COLA announcement does not automatically require an immediate rent adjustment for every household.
Instead, owners and agents should follow applicable HUD requirements for annual and interim recertifications, including the rules governing when changes in income must be reported and processed.
As a result, property management teams should review the updated benefit information and determine how it applies to household certifications under current HUD guidance.
What Should Owners and Agents Review?
As the 2027 COLA takes effect, owners and agents should consider the following:
- Updated benefit amounts: Review applicable Social Security and SSI benefit information when processing household certifications.
- Income verification: Follow HUD requirements for verifying benefits and maintaining appropriate documentation.
- Recertification procedures: Confirm when updated income should be reflected in annual or interim recertifications.
- Staff readiness: Ensure team members understand how the COLA may affect income calculations and tenant rent determinations.
Additionally, owners and agents should continue following current HUD guidance and their established compliance procedures when processing income changes.
Looking Ahead to 2027
The annual COLA provides an adjustment to help Social Security and SSI benefits keep pace with rising costs.
For beneficiaries, the increase means additional monthly income. For affordable housing professionals, it also serves as a reminder to review income verification and certification procedures as the new year approaches.
The key takeaway: Know the new benefit amounts, understand when they apply, and follow HUD’s current requirements when updating household income.
For the latest information, visit the Social Security Administration and consult applicable HUD guidance.
Frequently Asked Questions
What is the Social Security COLA for 2027?
The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027. The increase applies to Social Security and Supplemental Security Income benefits.
When will the 2027 Social Security Increase Begin?
The increase will appear in Social Security payments beginning in January 2027. SSI recipients will receive their first increased payment on December 31, 2026.
Will the 2027 COLA affect my rent in HUD-assisted housing?
It may. Social Security and SSI benefits generally count toward household income in HUD-assisted multifamily housing. However, whether and when an increase affects tenant rent depends on applicable HUD recertification requirements and the household’s circumstances.
Do I need to report my Social Security increase to my property manager?
Residents should follow their property’s income-reporting requirements. Whether an increase requires an interim recertification depends on applicable HUD rules and household circumstances.
Where can I find my updated 2027 Social Security benefit amount?
Beneficiaries can review their updated benefit information through their personal my Social Security account or through official notices from the Social Security Administration.
