Annual Inflationary Adjustments and Passbook Rate Announced

HUD has released the Annual Inflationary Adjustments and Passbook Rate that will become effective January 1, 2026. You can view them here.  

Why is this important? The HOTMA Final Rule requires that certain values be used when making income, asset, and eligibility determinations. These values are subject to being adjusted by an inflationary factor on an annual basis. The adjustments impact all of HUD’s Multifamily programs, LIHTC, HOME, and more! 

Your software vendor will incorporate these new values when determining income, net family assets, and adjusted income for recertifications effective January 1, 2026, or later.  

Noteworthy items:  

  • The dependent deduction will increase from $480 to $500, as will the related income exclusion for adoption assistance payments and income exclusion for adult Full Time Students. 
  • The mandatory deduction for elderly and disabled households will increase from $525 to $550. 
  • The Section 8 eligibility restriction on net family assets will increase from $103,200 to $105,574. 
  • The threshold value on actual income from non-necessary personal property to be included will increase from $51,600 to $52,787. 
  • The mandatory deduction for elderly and disabled households will increase from $525 to $550. 
  • The HUD Passbook Savings Rate will adjust universally from 0.45% back to 0.40% as of January 1, 2026. 

For DeSilva Housing Group clients that have purchased HOTMA versions of Tenant Selection Plans, you will note the annual change in inflationary adjustments for 2026 on your Inflationary Adjustment Log. This can be found within your Basecamp folder. The intention of this log is for you to update changes on the log and keep it as an attachment to your HOTMA TSP to avoid having to change the plan itself. 

Curious about our Tenant Selection Plans? Want to take the guesswork out of them? Check out our offerings for single properties here and for portfolios here