HUD Proposes New Method for HOME Program Subsidy Caps
Published Date: 4/10/2026
Notice
Summary
HUD is updating how it sets the maximum amount of money allowed per housing unit under the HOME Investment Partnerships Program. These new limits will apply to projects funded on or after May 11, 2026, and HUD wants your feedback on the method they’re using. This affects developers and communities building affordable homes by helping ensure funds are used wisely and fairly.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
HOME per-unit cap set at 240%
HUD is setting the HOME Program maximum per-unit subsidy at 240 percent of the Section 234 basic mortgage limits for condominium (elevator-type) housing. This cap applies to projects with HOME funds committed on or after May 11, 2026, and HUD says it kept the 240% cap because allowing a higher cap would result in fewer affordable housing units.
2025 HOME per-unit dollar limits
HUD published specific 2025 maximum per-unit subsidy dollar limits (HOME Maximum Per Unit Subsidy) that apply under the 240% rule: 0-bed $187,658; 1-bed $215,122; 2-bed $261,595; 3-bed $338,419; 4-bed $371,477. These amounts apply to projects for which HOME funds are committed on or after May 11, 2026.
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