Now Available: 2026 OCAFs for Project Based properties have been released
HUD has published its annual Operating Cost Adjustment Factors for 2026, establishing new rent guidelines for properties with anniversary dates on or after February 11, 2026.
From Denise Muha at NLHA:
We are happy to report that the Operating Cost Adjustment Factors (OCAFs) will be published tomorrow in the Federal Register. The nationwide factor is 5.1. The Virgin Islands and Florida (on quick glance) seem to have fared better than most states/territories. HUD is unusually tardy in publishing the 2026 numbers.
Typically, the OCAFs are issued in Oct and/or November. Last year they were published in December. We expect the 37 days government shutdown may had an impact although the Annual Adjustment Factors (AAFs) were published near the end of 2025.
2026 OCAF Highlights
Highest adjustments:
Virgin Islands: 12.3%
Louisiana: 9.8%
Florida: 8.2%
Mississippi: 6.4%
Oklahoma: 6.4%
Texas: 6.4%
New Mexico: 6.3%
Lowest adjustments:
Maine: 3.3%
New Hampshire: 3.6%
Rhode Island: 3.8%
Nevada: 3.8%
Montana: 4.0%
This year’s regional variations—what gives?
The significant variation in OCAFs across states reflects different regional cost pressures.
The Virgin Islands' exceptional 12.3% adjustment likely reflects import costs and hurricane recovery expenses. Louisiana and Florida's elevated factors may be influenced by insurance cost spikes following recent hurricane seasons.
States with lower adjustments, particularly in the Northeast, may be experiencing more stable insurance markets and slower property tax growth.
For property owners with project-based Section 8 contracts coming up for renewal, these factors will determine a significant portion of their rent adjustments. Remember: OCAF applies only to the operating expense portion of rent, not debt service costs.
Housing authorities using project-based vouchers now have the option to use OCAFs for rent adjustments under rules implemented in June 2024, providing more flexibility in managing their portfolios— read more here.
Looking Ahead
The 2026 OCAFs reflect a moderate national increase in operating costs, though well below the inflation spikes seen in recent years. As HUD continues refining its methodology, stakeholders should submit comments if they have insights on improving the accuracy and fairness of these critical adjustment factors.
For more information or to submit comments, visit www.regulations.gov and reference Docket No. FR-6495-N-02.
Comments are due by April 4, 2026.