HUD is set to publish the 2026 Operating Cost Adjustment Factors (OCAFs) in the Federal Register, marking an important update for owners and operators participating in HUD-assisted housing programs.
“HUD has released the 2026 Operating Cost Adjustment Factors with a nationwide average increase of 5.1%, reflecting continued operating cost pressures across the country.”
Key Highlights from the 2026 OCAFs
- Nationwide average OCAF: 5.1%
- Standout Regions: Early review indicates that Florida and the U.S. Virgin Islands fared better than many other states and territories.
- Effective Date: February 11, 2026, for Housing Assistance Payment (HAP) contract anniversary dates on or after that date.
Later Than Usual Release
HUD’s publication of the 2026 OCAFs comes later than the historical norm. Traditionally, OCAFs are issued in October or November, with last year’s factors released in December. The delay this year may be tied to the 37-day federal government shutdown, though it is notable that HUD’s Annual Adjustment Factors (AAFs) were still published near the end of 2025.
This timing difference has created some uncertainty for owners planning budgets and contract renewals, making the release of the OCAFs a particularly anticipated development.
What This Means for Owners and Operators
The 5.1% nationwide average factor reflects continued operating cost pressures across the country, including labor, utilities, insurance, and maintenance expenses. Owners should review the state-specific factors carefully to understand how the new OCAFs will affect upcoming HAP contract anniversary adjustments.
Preview the Federal Register Notice
A pre-review version of the Federal Register document is available here:
https://public-inspection.federalregister.gov/2026-02201.pdf
