Affordable Senior Housing News 2026Feb06

HUD Announces Delayed FY 2026 Income Limits

In a February 4 statement, the Department of Housing and Urban Development (HUD) announced that the fiscal year 2026 income limits will be released May 1 – one month later than the standard April 1 target date for release. The income limits are used to determine eligibility for many of HUD’s affordable housing programs, as well as for properties funded through the Low Income Housing Tax Credit (LIHTC). The statement reads: “Since FY 2011, HUD has based its median family income estimates on data from the Census Bureau’s American Community Survey (ACS). HUD obtains special tabulations of the ACS and uses the most recent data in its annual calculation of new median family income estimates and income limits. On November 26, 2025, the Census Bureau announced a delay in its release of 2024 ACS 5-year data from December 11, 2025 to January 29, 2026.1 As a result of this decision by the Census Bureau, it will be necessary for HUD to delay the release of FY 2026 median family incomes and income limits by one month, from April 1, 2026 to May 1, 2026.” The ACS survey delay was due to the government shutdown in the Fall. More information on the income limits is available here.

HUD Posts 2026 Operating Cost Adjustment Factors

On February 3, months later than usual, the Department of Housing and Urban Development (HUD) posted the factors used by affordable housing providers to adjust property budgets for 2026. The factors, called Operating Cost Adjustment Factors (OCAFs), are used by certain HUD-assisted housing communities, including those participating in the agency’s project-based Section 8 and Section 202/8 programs. The factors are based on nine market factors analyzed by HUD and are used to offset cost increases for property operations while keeping the rents affordable for residents with low incomes. Usually posted in October, HUD told LeadingAge that both the government shutdown from the Fall and the shifts in staff capacity impacted the agency’s ability to release the OCAFs on time; in January, LeadingAge sent a letter alongside other housing groups urging HUD to immediately release the factors. The OCAFs are effective February 11, 2026, and stipulate a 5.1% increase to budgets on average across the country, up slightly from last year’s national average of 4.8%. View the OCAFs by state here. HUD’s Utility Allowance Factors are still delayed.

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