USDA Tweaks Income Rules for Rural Rentals to Match 2016 Law
Published Date: 6/30/2025
Proposed Rule
Summary
If you live in or manage USDA-funded rural rental or farm labor housing, new rules are coming for how your yearly income and family assets are calculated. These changes make sure the income checks match a 2016 law, aiming for fairer and clearer income limits. Expect these updates to roll out soon, helping keep housing affordable and on track.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Changes to income and asset tests
If you rent in USDA-funded Section 515 Rural Rental Housing or Section 514/516 Farm Labor Housing, the USDA will change how it calculates annual household income and net family assets to align with the Housing Opportunity Through Modernization Act of 2016 (HOTMA). The change is meant to make income limits fairer and clearer and to help keep housing affordable.
New income-certification rules for managers
If you manage or operate properties that receive Section 515 or Section 514/516 USDA funding, the Agency proposes changes to the annual income certification rules and the way net family assets are calculated to align with the Housing Opportunity Through Modernization Act of 2016 (HOTMA). These regulatory changes will affect how managers perform income certifications for tenants in those programs.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-06173, Single Family Housing Guaranteed Loan Program-Income Producing Accessory Dwelling Unit (ADU) Provisions
The USDA’s Rural Housing Service wants to update its loan program so people can get loans to buy homes with one or more income-producing Accessory Dwelling Units (ADUs). This means homeowners can finance properties that include rental units or spaces for home-based work. If you’re interested, make sure to send your comments by June 1, 2026!
2026-05387, Single Family Housing Guaranteed Loan Program
The USDA’s Rural Housing Service is updating its Single Family Housing Guaranteed Loan Program to let approved lenders use automated systems for making loans and getting guarantees after closing. This change helps speed up the loan process for folks buying homes in rural areas. The new rules kick in June 17, 2026, with full use starting September 28, 2028, making it easier and faster for lenders and homebuyers alike.
2026-16914, Rescission of Rural Development's Construction and Repair Regulation
The Rural Business-Cooperative Service (RBCS), Rural Housing Service (RHS), and Rural Utilities Service (RUS), together make up the Rural Development (RD or the Agency) mission area within the U.S. Department of Agriculture (USDA). RD is issuing this proposed rule to rescind its regulation regarding construction and repairs. RD found this regulation to be unnecessary and unduly burdensome. In addition, it makes changes to RBCS regulations by removing references to the construction and repair regulations. The plain language summary of the proposal is available on Regulations.gov in the docket for rulemaking.
2026-13455, Direct Multifamily Housing Subsequent Loans for Acquisition
The USDA’s Rural Housing Service wants to make it easier for owners of USDA-financed apartment buildings to get extra loans for buying those properties again. This change cuts red tape and helps keep affordable housing in good shape. If you’re involved, get your comments in by August 31, 2026, to have your say!
2026-13397, Notice of Recission of Funding Opportunity for the Rural Community Development Initiative (RCDI) for Fiscal Year 2025
The USDA’s Rural Housing Service is canceling the current funding opportunity for the Rural Community Development Initiative (RCDI) for 2025. This means anyone who applied before will need to reapply once the updated program details are ready. The change happens right away, so no applications from the old round will move forward.
2026-11698, 60-Day Notice of Proposed Information Collection: Direct Single Family Housing Loans and Grants HB-1-3550, and HB-2-3550; OMB Control No.: 0575-0172
The USDA’s Rural Housing Service wants to update the forms and info they collect for single-family home loans and grants to make things smoother and more modern. If you’re applying for these loans or grants, this could affect you. They’re asking for your thoughts by August 10, 2026, so don’t miss your chance to weigh in!
Previous / Next Documents
Previous: 2025-10305, Multifamily Housing Guaranteed Rural Rental Housing Program Requirement To Submit a Market Study
The USDA’s Rural Housing Service is updating its rules to require lenders applying for Guaranteed Rural Rental Housing loans to include a market study showing there’s a real need for new housing. This helps make sure new projects are built where people actually need them. The change affects all loan applicants and aims to improve how housing projects get approved, with no extra fees but a new paperwork step.
Next: 2025-11739, Improving and Eliminating Regulations; Installation of Foam Generator Systems in Underground Coal Mines
MSHA wants to update rules about foam generator systems in underground coal mines by removing old, unnecessary requirements. This change won’t reduce safety for miners but will make the rules clearer and easier to follow. Mine operators should get ready for these updates, which aim to keep things safe without extra hassle or cost.