The Social Security Administration (SSA) announced today, October 14, 2026, that Social Security and Supplemental Security Income (SSI) benefits will receive a 3.6% cost-of-living adjustment (COLA) for 2027.

For affordable housing professionals, the immediate question is not simply how much benefits will increase. It is when the announced increase must be reflected in income calculations.

The announcement at a glance

• 2027 COLA: 3.6%, compared with 2.8% for 2026.
• Social Security benefits: Increased benefits begin in January 2027.
• SSI benefits: Increased payments begin December 31, 2026.
• Typical impact: SSA estimates that the average monthly retired-worker benefit will rise from $2,095 to $2,170, approximately $75 more per month.
• Individual notices: Updated COLA notices will be available to eligible my Social Security account holders beginning in late November and mailed in December to recipients who have not elected paperless notices.

The housing compliance issue: When do we apply the 3.6%?

For HUD public housing authorities and covered multifamily owners, HUD gives a specific instruction. Section B.3 of HUD Notice H 2023-10/PIH 2023-27 (Revision 3) directs PHAs and multifamily owners, beginning the day after SSA announces the COLA, to factor the announced increase into Social Security and SSI annual income for annual and interim reexaminations that have not yet been completed and will be effective January 1 or later of the upcoming year.

Because SSA announced the 2027 COLA on October 14, that instruction applies beginning October 15, 2026, to the qualifying 2027-effective reexaminations described in the notice.

That is a timing rule for covered HUD reexaminations. It does not mean that every certification performed in October 2026 must immediately use the higher benefit amount, and it should not be treated as a blanket requirement for every affordable housing program.

A quick calculation example

Suppose a family member currently receives $1,500 per month in gross Social Security benefits, and the 2027 COLA applies to the income determination:

• Current gross monthly benefit: $1,500.00
• 3.6% COLA increase: $54.00
• Estimated new gross monthly benefit: $1,554.00
• Estimated annualized benefit at the new rate: $18,648.00

This is an illustration. Use the correct gross Social Security or SSI amount and applicable verification; do not apply the COLA a second time to a benefit figure that already includes it. HUD notes that the federal SSA COLA does not apply to state-paid disability benefits.

What about an LIHTC, HOME, or other layered property?

A property's income-determination rules depend on the specific program, transaction, and applicable agency guidance. LIHTC and HOME professionals should account for known changes in income under their applicable rules, but should not automatically export HUD's specific annual/interim reexamination timing instruction to every LIHTC or HOME certification.

Likewise, a 3.6% Social Security COLA is not a 3.6% increase in LIHTC income limits, HOME income limits, or HUD's separately published 2027 HOTMA inflation-adjusted figures. Those are distinct determinations.

For layered properties, review the program rules that govern each certification and document the income figure and methodology used.

Action steps for compliance teams

1. Flag pending HUD annual and interim reexaminations effective January 1, 2027, or later, and apply HUD's October 15 instruction where applicable.
2. Update benefit-calculation worksheets for the new 3.6% figure, and check that gross benefits—not net deposits after Medicare deductions—are being used where required.
3. Distinguish 2026-effective from 2027-effective actions and confirm program-specific treatment at mixed-finance or layered properties.
4. Use SSA's new individual benefit notice when available and keep calculations and verification consistent with the governing rules.

Primary sources

• Social Security Administration: October 14, 2026 press release
• SSA: 2027 COLA Fact Sheet
• HUD Notice H 2023-10/PIH 2023-27 (Revision 3), Attachment B.3

This article is provided for regulatory compliance education. Always apply the requirements of the governing housing program and applicable agency guidance.