HOTMA 2026 Inflationary Rates Published

For those owner/agents who have implemented certain HOTMA changes in advance of HUD's HOTMA implementation of 1/1/2026, please note that the 2026 Inflationary Rates have been published. See below for the latest values. 

While it is important to note these changes, for HUD's Multifamily Housing programs, we recommend delaying implementation until HUD releases TRACS version 2.0.3.A. See HUD's guidance related to early implementation of HOTMA for HUD's Multifamily Housing Programs. 

If owner/agents do implement any HOTMA changes, the tenant file must be documented explaining which change was implemented and, if applicable, what TTP would have been previous to implementation of HOTMA. We have a form template to assist you in creating a standard "Note to File - HOTMA". This form is available on our HOTMA Resource Page. 

Owner/agents managing properties under HUD's Multifamily Housing Programs should also take special note of the change to the Dependent Deduction. If a full time student, who is not the HOH, co-HOH/spouse, is listed as a dependent on HUD Form 50059, the earned income amount is capped. Per 24CFR 5.60 the following income exclusion applies. 

Exclude (14) Earned income of dependent full-time students in excess of the amount of the deduction for a dependent in § 5.611. 

This means that, once the change to HOTMA Dependent Deductions is implemented (1/1/2026 or when TRACS v 2.0.3.A is available), the earned income exclusion for full-time student dependents will change as well. 

If you have questions related to HOTMA’s effect on HUD’s Multifamily Housing programs (MFH), they should be directed to MFH_HOTMA@hud.gov.