Affordable Senior Housing News 2026May14

Additional Analysis: President’s FY27 Budget Request for HUD

As reported on April 3, 2026, the White House released its FY 2027 budget proposal. Despite the critical shortage of affordable homes across America, the administration is requesting $73.5 billion in gross discretionary funding for HUD, which is $10.7 billion fewer funds compared to FY 2026 enacted levels, a 13% decrease. The proposed reductions include harmful cuts to critical programs serving older adults and the aging services workforce, like project-based Section 8, Section 202, and Housing Choice Vouchers. The request also includes a mixed bag of policy proposals, including several policy changes that would be harmful for affordable housing providers and residents. Take action here by reaching out to your lawmakers in support of strong HUD funding, and read more information about the President’s budget request here.

HUD Issues 2026 Income Limits, Updates Fair Market Rents

The U.S. Department of Housing and Urban Development (HUD) released the official 2026 HUD median family income limits on May 1, which determine eligibility for HUD-assisted programs and low-income housing tax credit (LIHTC) properties for the year. The average annual change in the limit across HUD areas is 3.4%. Any certification that was fully signed by residents and owners prior to 5/1 can remain as is. Any certification after 5/1 should be regenerated to display the correct income limits. Applicable programs include Public Housing, project-based Section 8, Section 8 Housing Choice Vouchers, Section 202 Supportive Housing for the Elderly, Section 811 Housing for Persons with Disabilities, and Section 236. HUD develops annual income limits based on Median Family Income estimates and Fair Market Rent area definitions. Income limits are also adjusted according to family size and in areas with unusually high or low incomes relative to housing costs. More information about income limits is available here. Separately from the 2026 Income Limits, HUD published a notice in the Federal Register updating fiscal year (FY) 2026 fair market rents (FMRs) for seven areas, effective May 21, 2026. Fair Market Rents (FMRs) are used to determine payment standard amounts for the Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, initial rents for housing assistance payment (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy program (Mod Rehab), rent ceilings for rental units in both the HOME Investment Partnerships program and the Emergency Solutions Grants program, maximum award amounts for Continuum of Care recipients and the maximum amount of rent a recipient may pay for property leased with Continuum of Care funds, and flat rents in Public Housing units. The adjusted FMRs are in response to a Federal Register notice published Aug. 22, 2025, that requested public comments on the FY 2026 FMRs, to which commenters requested FMR reevaluations. HUD's FMRs are available here. 

Affordable housing Weekly Recap. Here is your weekly Affordable Housing Weekly Recap