Social Security Releases Cost-of-Living Adjustment (COLA) for 2026

On October 24, 2025 the Social Security Administration (SSA) published a news release announcing a 2.8% Cost of Living Adjustment (COLA) that will apply to benefits, beginning January 2026. Once the information is published by the SSA, it is considered “verifiable,” and the COLA must be included when determining annual income.

***Note: Exception applies for HUD properties when determining income at recertification using EIV Be sure to include a copy of the SSA Cost-of-Living Adjustment (COLA) press release in any applicant or tenant file where the COLA has been applied (imputed) in the income calculation. To determine the benefit amount after the increase, either:

1.  Multiply the benefit amount by the COLA % to get the amount of increase. Then add the amount of increase to the current benefit to determine the new benefit amount, OR
2. Multiply the benefit amount by 1 plus the COLA % expressed as a decimal (i.e., 2.8% = 1.028)

Example – Social Security COLA Increase

On October 24, 2025, Social Security Administration (SSA) announced an 2.8% COLA increase for benefit recipients for the next calendar year.

Taylor, who is applying for housing, has a current Social Security benefit in the amount of $1,256 a month and they want to move-in on December 1st.

In this example, management would count:

• 1 month at $1,256 , and
• 11 months at $1,291.17 ($1,256 x 1.028% = $1,291.17)
• 1 x $1,256 = $1,256
• 11x $1291.17 =$14,202.87
• $1,256 + $14,402.87 = 15,458.87 Total projected income from Social Security.

***COLA & HUD PBRA Recerts

When processing recertifications with an effective date of January 1, February 1, March 1 and April 1, the owner must use one of the methods below for determining the tenant’s income.

1. Use the benefit information reported in EIV that does not include the COLA as third-party verification if the tenant confirms that the income data in EIV is what
   they are receiving;
2. Use the SSA benefit, award letter or Proof of Income Letter provided by the tenant that includes the COLA adjustment if the date of the letter is within 120 days from
   the date of receipt by the owner;
3. Determine the tenant’s income by applying the COLA increase percentage to the current, verified benefit amount and document the tenant file with how the tenant’s income was determined; or
4. Request third-party verification directly from SSA when the income in EIV does not agree with the income the tenant reports he/she is receiving.