Notice of Certain Operating Cost Adjustment Factors for 2026
Published Date: 2/3/2026
Notice
Summary
Starting February 11, 2026, HUD is updating the yearly cost adjustment factors that affect rents for certain affordable housing projects under Section 8. These changes help keep rent payments fair and in line with operating costs for eligible multifamily housing. If you have thoughts on how these factors are calculated, you can share your comments by April 6, 2026.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Contract Rents Adjusted by State OCAFs
If you own or manage a HUD Section 8 multifamily project, HUD will adjust contract rents using the 2026 Operating Cost Adjustment Factors (OCAFs) for the State where the project is located. These OCAFs apply to renewals under MAHRA and as an allowable rent-adjustment method for project-based voucher contracts, and take effect for projects with an anniversary date on or after February 11, 2026; examples in the notice include Florida 8.2%, Louisiana 9.8%, Virgin Islands 12.3%, and a U.S. average of 5.1%.
Section 8 Tenant Rent Calculations May Change
If you live in an eligible HUD Section 8 multifamily project, your property's contract rent calculation will be adjusted using the 2026 OCAFs for the State where the property is located for anniversary dates on or after February 11, 2026. The notice lists state OCAFs that HUD will apply to the portion of rent tied to operating expenses (for example, Florida 8.2%, Louisiana 9.8%, U.S. average 5.1%).
No Negative OCAFs (Zero Floor)
HUD will not apply a negative OCAF for any State; where a calculated OCAF is less than zero, HUD will use zero instead. In practice, this means OCAFs for renewals are floored at 0.0% rather than reducing the portion of rent attributable to operating expenses.
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