On Monday, August 3, 3026, HUD released the inflation-adjusted values and passbook savings rate for the 2027 calendar year, as required under the Housing Opportunity Through Modernization Act (HOTMA) of 2016. These figures determine how owners, agents, and public housing agencies calculate annual income, adjusted income, and net family assets for income assessments across all HUD programs, including Section 8, public housing, and related multifamily initiatives. The new amounts become effective on January 1, 2027.

Owners and agents managing LIHTC properties combined with HUD assistance — as well as developments funded by HOME and HTF — should recognize that these figures are directly linked to the HUD definitions of annual income and net family assets included in 24 CFR Part 5, Subpart F, as incorporated by HOTMA. If your property uses those definitions, whether directly or by cross-reference, these updated thresholds will apply to your upcoming certifications and recertifications starting from the effective date. While asset limitations do not apply to LIHTC properties, all changes to income projections or asset valuations do apply.

A reminder from HUD: these tables only apply to programs that have implemented HOTMA Sections 102 and 104. If your agency, property, or program administrator has not yet transitioned to HOTMA compliance, these updated figures do not yet apply to you.

2027 Inflation-Adjusted Values (Table 1)

These figures apply broadly across Section 8 PBRA, Section 202/8, Section 202/811 PRAC, Section 236 IRP, Section 811 PRA, SPRAC, HCV, Public Housing, Section 8 Mod Rehab and Mod Rehab SRO, HOPWA, HOME, and HTF — and, per HUD's footnote to the table, may also apply to other HUD programs that rely on the Part 5, Subpart F definitions of annual income and adjusted income to determine eligibility or assistance levels.

2027 Passbook Savings Rate (Table 2)

The passbook rate is used to calculate imputed income from net family assets once the applicable threshold above is exceeded, and applies to the same program list as Table 1.

What This Means for Your Property

• Update your income limits and worksheets. Certification software, income calculation worksheets, and TIC/HUD-50059 forms that reference the previous year's asset threshold, dependent deduction, or elderly/disabled deduction should be revised to reflect the 2027 figures before processing certifications starting on or after January 1, 2027.
• Confirm the HOTMA implementation status. If your program or portfolio has not yet officially implemented HOTMA Sections 102 and 104, these updated figures do not apply yet — continue using your current guidance until implementation occurs.
• Monitor effective dates for move-ins and recertifications. As with previous yearly updates, the effective date determines which certifications use the new figures versus the previous year's amounts; verify your agency's or investor's policy on transition certifications that span the effective date.
• Layered LIHTC and HUD deals. When properties qualify for both LIHTC and HUD rental assistance, remember that the HOTMA-driven asset and income thresholds determine HUD's side and may differ from Section 42's rules. Ensure your documentation aligns to prevent conflicting decisions between the two funding sources.

As always, consult the HOTMA Final Rule and Attachment H of the HOTMA Implementation Guidance for the complete calculation method, and reach out to your HFA or HUD field office with any questions about program-specific implementation.

This article is for general informational purposes only and does not constitute legal advice. Please consult your compliance team or legal counsel regarding how it applies to your specific properties and programs.