It's a conversation that has happened in all HOTMA training: 

Doubful Questioner: "Will HUD actually publish the HOTMA inflation-adjusted factors on time by Sept 1?"

Our new answer: "Yes."

Question: "How can you be sure?"

Answer: They're out now!

HUD has published the 2025 HOTMA adjustment factors webpage HERE.

A PDF of the adjustment factors can be downloaded HERE.

Summary | Below are the 2025 adjustment factors:

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

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Imputed asset income threshold

2025 | $51,600  2024 | $50,000

Non-necessary personal property inclusion threshold

2025 | $51,600  2024 | $50,000

Asset self-certification threshold

2025 | $51,600  2024 | $50,000

Earned income exclusion for dependent adult full-time students

2025 | $480  [unchanged]

Adoption assistance exclusion 

2025 | $480  [unchanged]

Passbook savings rate 

2025 | 0.45%  2024 | 0.4%

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

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Asset Limitation

2025 | $103,200  2024 | $100,000

Mandatory deduction for elderly/disabled households

2025 | $525  [unchanged]

Mandatory deduction for dependents

2025 | $480  [unchanged]

Details 

The HOTMA Rule implements requirements that certain amounts used to make income, asset, and eligibility determinations be adjusted by an inflationary annually. Recipients of funding under the above-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

Pror to 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 become 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. 

Are you ready to audit files in the HOTMA era?

     Attention:

• LIHTC, HOME, and HUD agency staff
• Owners/agents
• Investor and other compliance professionals

Get the checklists and other tools shared during this major focus of this year's Compliance Summit!