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HUD Inflation-Adjusted Values

Annual HOTMA inflation-adjusted thresholds, deductions, and passbook savings rate. Effective January 1 of each calendar year per Sections 102 and 104 of HOTMA.

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Effective Year
Asset Limitation
Eligibility Restriction on Net Family Assets
24 CFR § 5.618(a)(1)(i) — HUD-assisted programs only; does not apply to LIHTC
Annual Income
Imputed Income / Self-Cert / Non-Necessary PP Threshold
24 CFR §§ 5.609(a)(2), 5.618(b)(1), 5.603(b)
Student Earned Income Exclusion
24 CFR § 5.609(b)(14)
Adoption Assistance Exclusion
24 CFR § 5.609(b)(15)
Passbook Savings Rate
24 CFR 5.609(a) — FDIC National Deposit Rate
Adjusted Income Deductions
Elderly/Disabled Family Deduction
24 CFR § 5.611(a)(2)
Dependent Deduction
24 CFR § 5.611(a)(1)

What Are These Values?

  • Under HOTMA (Housing Opportunity Through Modernization Act), HUD annually adjusts key dollar thresholds and deduction amounts for inflation. These values are effective January 1 of each calendar year.
  • The adjustments apply to programs using the definitions of annual income and adjusted income in 24 CFR Part 5, subpart F.

Value Definitions

  • Asset Limitation (24 CFR § 5.618(a)(1)(i)) — The net family asset threshold above which a family is out of compliance in HUD-assisted programs. Does NOT apply to LIHTC/Section 42.
  • Imputed Income Threshold (24 CFR §§ 5.609(a)(2), 5.618(b)(1), 5.603(b)) — The net family asset threshold above which imputed returns must be calculated. Also serves as the self-certification threshold and the non-necessary personal property inclusion threshold.
  • Student Income Exclusion (24 CFR § 5.609(b)(14)) — Maximum earned income exclusion for dependent full-time students.
  • Adoption Assistance Exclusion (24 CFR § 5.609(b)(15)) — Maximum income exclusion for adoption assistance payments.
  • Elderly/Disabled Deduction (24 CFR § 5.611(a)(2)) — Mandatory adjusted income deduction for elderly and disabled families.
  • Dependent Deduction (24 CFR § 5.611(a)(1)) — Mandatory adjusted income deduction per dependent.
  • Passbook Rate (24 CFR 5.609(a)) — The HUD passbook savings rate used to impute income on net family assets. Based on the FDIC National Deposit Rate for savings accounts.

How to Use

  • Select the calendar year matching the effective date of the certification or reexamination.
  • The Imputed Income Threshold determines whether assets require third-party verification or may be self-certified, and whether imputed income must be calculated.
  • The Passbook Rate is used in the Asset Calculator when actual income from an asset cannot be computed.

Source

  • Values are published annually by HUD, typically in August, and become effective January 1 of the following year.
  • Source documents: “HUD Inflation-Adjusted Values” and “HUD Passbook Savings Rate” tables published on the HUDUser website.