HUD Publishes 2026 Income and Rent Limits for the HOME Program
By A.J. Johnson
The U.S. Department of Housing and Urban Development (HUD) has released the 2026 Income and Rent Limits for the HOME Investment Partnerships Program (HOME). The new limits take effect on June 1, 2026, and participating jurisdictions (PJs), owners, and managers of HOME-assisted rental projects must apply the updated figures on that date.
The 2026 HOME limits follow HUD's May 1, 2026, release of the FY 2026 Multifamily Tax Subsidy Project (MTSP) and Section 8 income limits, which serve as the basis for HOME Program calculations. The April 1 release was delayed by one month after the U.S. Census Bureau postponed publication of the 2024 American Community Survey (ACS) five-year data, a key input in HUD's income limit methodology. Across HUD areas, the 2026 income limits show an average annual increase of about 3.4 percent in the very low-income limit, with the maximum allowable increase capped at 10 percent for FY 2026.
Under 24 CFR §92.252, HUD releases two sets of HOME rent limits annually: the High HOME Rent and the Low HOME Rent.
High HOME Rent. The High HOME Rent is the lesser of (1) the Section 8 Fair Market Rent for comparable existing units in the area, or (2) a rent equal to 30 percent of a family's adjusted income, where the family's annual income is 65 percent of the area median income, with adjustments for unit size.
Low HOME Rent. The Low HOME Rent applies to 20 percent of HOME-assisted units in projects with five or more such units, which must be reserved for very low-income households. The Low HOME Rent generally cannot exceed 30 percent of a family's annual income at 50 percent of the area median income, with adjustments for unit size, but may not surpass the High HOME Rent for the area.
The HOME income limits used for tenant qualification are the Section 8 50 percent (very low-income) and 80 percent (low-income) limits published by HUD, adjusted for family size.
No hold-harmless protection. Unlike LIHTC projects, HOME-assisted properties are not protected against decreases in income or rent limits. If the 2026 limits are lower than 2025 for a specific area, owners must lower rents accordingly, respecting existing lease terms and the 30-day notice requirement under §92.252(f)(2).
Rent decreases and tenant notification. When a rent decrease is necessary, landlords must give tenants at least 30 days' written notice before making any rent change. Rent increases also require 30 days' notice and must comply with any lease restrictions.
Effective date. The 2026 HOME Income and Rent Limits will take effect on June 1, 2026. PJs cannot approve rent increases based on the 2026 limits before that date, and any decreases must be carried out in accordance with PJ policies and the regulatory timeline.
Utility allowances. Maximum HOME rents include utilities paid by the tenant. Owners must subtract the applicable utility allowance from the published HOME rent to arrive at the maximum rent the tenant may be charged.
Project-based rental assistance. For HOME units receiving federal or state project-based rental assistance, the maximum rent is the amount permitted under the assistance program, where the tenant pays no more than 30 percent of their adjusted income.
Owners and managers of properties subject to both the HOME Program and the LIHTC should know that these programs have different limit structures and effective dates. The 2026 MTSP income limits for LIHTC properties took effect on May 1, 2026, and must be implemented within 45 days, by June 15, 2026. HOME limits become effective on June 1, 2026. Additionally, while LIHTC properties are protected from decreases in rents, HOME limits are not. For units receiving dual assistance, owners must apply the more restrictive of the two limits.
Owners and management agents of HOME-assisted properties should take the following steps in advance of the June 1, 2026, effective date:
1. Download the 2026 HOME Income and Rent Limits for each applicable area from HUD User (huduser.gov) or the HUD Exchange (hudexchange.info) and confirm the limits with the responsible PJ.
2. Compare 2026 limits to 2025 limits to identify any areas where rent reductions will be required, and prepare 30-day tenant notices accordingly.
3. Update internal rent schedules, certification systems, and TIC forms to reflect the 2026 income and rent figures.
4. Verify that posted utility allowances remain current and subtract them from the published HOME rent to determine the maximum tenant-paid rent.
5. For properties layered with LIHTC, tax-exempt bonds, or project-based rental assistance, confirm that the most restrictive applicable limit is being used for each unit.
6. Train onsite leasing and compliance staff on the new limits before processing any new applications or recertifications under the 2026 figures.
The 2026 HOME Income and Rent Limits establish the framework for tenant eligibility and maximum rents at HOME-assisted rental properties for the upcoming year. Although the average increase is moderate, local results will vary, and more areas than in recent years are expected to see decreases. Since HOME projects are not protected from reductions, owners and PJs should review the new figures promptly to ensure full compliance by the June 1, 2026, effective date.
A.J. Johnson Consulting Services, Inc. provides regulatory compliance consulting and training to owners, managers, syndicators, and Housing Finance Agencies serving the affordable housing industry. For questions regarding the implementation of the 2026 HOME Income and Rent Limits or other compliance matters, contact our office.
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