On December 3, HUD published the Section 8 Housing Assistance Payments Annual Adjustment Factors (AAFs) for 2025. AAFs apply only to the initial term of Section 8 HAP contracts in the New Construction, Substantial Rehabilitation, Moderate Rehabilitation, Loan Management Set-Aside (LMSA), and Property Disposition (PD) programs. Application of AAFs varies depending on the specific program. The effective date of the notice is December 3, 2024.
AAFs do not apply to programs utizilng the Operating Cost Adjustment Factors (OCAFs), nor to the HCV program and the separate Renewal Funding Inflation Factors (RFIFs). The 2025 AAFs will be posted here.
The full notice can be found at: Federal Register :: Section 8 Housing Assistance Payments Program-Annual Adjustment Factors, Fiscal Year 2025.