New HOTMA Inflation Adjusted Values Come to Life for 2025

The U.S. Department of Housing and Urban Development (HUD) has released the revised inflationary adjustments for the calendar year 2025. The updated values are effective January 1, 2025. 

HUD’s HOTMA Final Rule and 2025 Adjustments

On February 14, 2023, HUD published the Housing Opportunity Through Modernization Act (HOTMA) Final Rule, requiring annual inflationary adjustments to income, asset, and eligibility determinations. These adjustments are necessary to ensure that household income calculations remain fair and reflective of current economic conditions. It is important to note that depending on the result of HUD’s calculation of the inflation factor, some values may not increase from the prior year. 

Nine Inflation Adjusted Values 

There are nine (9) values that are required to be adjusted by HUD, which HUD is to publish each September for use beginning January 1st of the following year. 

• Eligibility restriction on net family assets    
• Inputting Income Threshold
• Passbook Rate    
• Non-Necessary Personal Property Threshold   
• Amount of Earned income included in income for an Adult Dependent full-time students 
• Amount of adoption assistance included in income  
• Self-Certification of Assets Threshold          

Dependent Deduction

Elderly/Disabled Deduction

Adjusted Value Increases for 2025

HUD’s recently released 2025 adjustments include changes to the passbook savings rate, various allowances and asset thresholds. 

There are five (5) adjusted values that have been have increased for 2025: 

1. Asset Limitation amount increased from $100,000 to $103,200
2. Inputting Asset Income Threshold increased from $50,000 to $51,600
3. Passbook Rate increased from .40% to .45%
4. Self-Certification of Assets Threshold increased from $50,000 to $51,600
5. Non-Necessary Personal Property Threshold increased from $50,000 to $51,600

US Housing Consultants 2025 HUD Inflation -Adjusted Values Effective January 1, 2025 – Quick Reference & Program Applicability Chart