2026-13542NoticeWallet

HUD Sets 2026 Section 8 Rent Inflation Factors

Published Date: 7/6/2026

Notice

Summary

Public Housing Agencies (PHAs) will see their 2026 Section 8 renewal funding adjusted by a 2.337% inflation factor based on local rent changes. This update helps keep housing assistance payments in line with rising costs starting July 6, 2026. HUD is also asking for feedback on possible new ways to tweak these adjustments for 2027 to better reflect local housing rules.

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

FY2026 RFIFs Set at 2.337%

HUD set the national change in Per Unit Cost (PUC) for the Housing Choice Voucher program at 2.337 percent and apportioned that change to each PHA based on the change in the area's two‑bedroom Fair Market Rent (FMR). The FY2026 inflation factors take effect July 6, 2026, and RFIF tables by FMR area are available at https://www.huduser.gov/portal/datasets/rfif/rfif.html.

HUD May Adjust FY2027 Methods for Local Supply

HUD is soliciting comments and is considering refining the FY2027 RFIF methodology to incorporate an additional factor that would partially discount (or mark up) local inflation adjustments where local land‑use, permitting, or other regulatory policies appear to constrain (or expand) housing supply. HUD asked specific questions including possible data sources and whether to apply changes only to PHAs above a threshold (for example, PHAs administering over 2,000 HCVs).

Local Factors Cannot Go Below 1.0

When HUD scales individual area inflation factors so the voucher-weighted average matches the national 2.337% change, it ensures that no area's inflation factor is less than 1.0 — i.e., no area's RFIF will be reduced below one for FY2026.

How National PUC Is Calculated

HUD projects the national PUC using a notional PUC equal to gross rent minus 30% of tenant income and forecasts gross rent by weighting projected recent‑mover rents (FMR) at about 56% and CPI gross rent at about 44%. This methodology (refined in FY2025) produced the 2.337% national change for 2026.

PHAs With Multiple Areas Use Voucher-Weighted Average

If a PHA operates in multiple FMR areas, HUD calculates the PHA's inflation factor as a voucher‑weighted average of the area factors using voucher counts captured in HUD administrative data as of December 31, 2025.

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Key Dates

Published Date
7/6/2026

Department and Agencies

Department
Independent Agency
Agency
Housing and Urban Development Department
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