On December 3, the Department of Housing and Urban Development (HUD) announced the Annual Adjustment Factors (AAFs) for 2025, which adjust rents for certain Section 8 housing assistance payment programs for the current fiscal year. The 2025 AAFs are effective as of December 3, 2024.

HUD establishes the rent adjustment factors on the basis of Consumer Price Index (CPI) data relating to changes in residential rent and utility costs.

AAFs are applied at the anniversary of certain Housing Assistance Payment (HAP) contracts; the amount that an owner is required to deposit to the Reserve for Replacement account is also adjusted annually by the most recently published AAF, at the HAP contract anniversary.

The AAFs are distinct from, and do not apply to the same properties as, Operating Cost Adjustment Factors (OCAFs), which are used by many Section 8 and Section 202/8 properties. HUD’s OCAF notice is still forthcoming for 2025.

More information is available here.