HUD has published a notice in the Federal Register announcing the FY-2014 Annual Adjustment Factors (AFF) for adjustment of contract rents for units assisted in certain Section 8 housing assistance payment programs. AAFs are used to calculate rent changes when Section 8 contracts are renewed. Each Section 8 program category uses the AAFs differently and AAFs are not used in determining renewal rents (with the exception of the Project-Based Certificate program), budget-based rents, or for the Tenant-Based Certificate program. AFFs are based on a formula using residential rent and utility cost changes from the Labor Bureau’s most recent Consumer Price Index (CPI) survey.
The notice provides a broad description of procedures for adjusting the contract rent. These adjustment factors are effective February 18, 2014. A separate notice will be published that will identify the inflation factors that will be used to adjust tenant-based rental assistance funding for FY-2013.
Click here to read the Federal Register notice.