HUD has published the 2027 HOTMA adjustment factors webpage HERE.

A PDF of the adjustment factors can be downloaded HERE.

Summary | Below are the 2027 adjustment factors:

Income and Asset Factors [generally apply to all HOTMA-affected programs]

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• The Asset Threshold will be $54,898.

Specifically, this affects 3 factors:

1. Imputed asset income threshold

2027 | $54,898     2026 | $52,787     2025 | $51,600     2024 | $50,000 

2. Non-necessary personal property inclusion threshold

2027 | $54,898     2026 | $52,787     2025 | $51,600     2024 | $50,000

3. Asset self-certification threshold

2027 | $54,898     2026 | $52,787     2025 | $51,600     2024 | $50,000

• Earned income exclusion for dependent adult full-time students

2027 | $525     2026 | $500     2025 $480     2024 | $480

• Adoption assistance exclusion 

2027 | $525     2026 | $500     2025 $480     2024 |$480

• Passbook savings rate 

2027 | 0.38%     2026 | 0.4%     2025 | 0.45%     2024 | 0.4%

Adjusted Income Factors [generally apply to HUD subsidized rent programs]

• Asset Limitation

2027 | $109,797     2026 | $105,574     2025 | $103,200     2024 | $100,000 

• Mandatory deduction for elderly/disabled households

2026 | $550  2025 $525

• Mandatory deduction for dependents

2027 | $525     2026 | $500     2025 $480     2024 |$480

Details 

The HOTMA Rule implements requirements that certain amounts used to make income, asset, and eligibility determinations be annually adjusted by an inflationary factor. Recipients of funding under the covered programs, including PHAs, MFH Owners, Grantees, and LIHTC owners/agents must use the HUD-published values when determining income, net family assets, and adjusted income (if applicable) for income examinations per the HOTMA Final Rule and implementation guidance.

Background | Inflationary Adjustments

Before September 1st of each year, HUD intends to calculate the inflation factor, recalculate the inflation-adjusted values, and post the revised figures effective for the next calendar year on a webpage. The revised amounts will then be effective on January 1st of each year. The amounts effective January 1, 2024, were published in the HOTMA final rule. HUD’s methodology for calculating and applying the inflationary factor to the values specified in the final rule was published in the Federal Register (89 FR 27440). Going forward, HUD will solicit public comment only if the Department proposes to change the methodology.

Background | Passbook Savings Rate

In addition to the inflationary adjustments, HUD will also annually publish a passbook rate to become effective on January 1st of each year. The passbook rate is based on the Federal Deposit Insurance Corporation (FDIC) National Deposit Rate for savings accounts, which is an average of national savings rates published monthly. PHAs/MFH Owners/Grantees/LIHTC owners/agents must use the HUD-published passbook rate when calculating imputed asset income for all income examinations. HUD published the passbook rate methodology in joint Notice PIH 2023-27 / H 2023-10. PHAs/MFH/LIHTC owners/agents should refer to joint Notice PIH 2023-27 / H 2023-10 for additional information on HOTMA implementation. State LIHTC agency HOTMA policy should also be consulted for tax credit applicability. 

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