HUD issued a notice of Fiscal Year (FY) 2019 Annual Adjustment Factors (AAFs) for certain properties in HUD’s Section 8 housing assistance payment (HAP) programs. The AAFs are provide annual adjustments to rents based on data from the Bureau of Labor Statistics Consumer Price Index survey.
The annual adjustment factors are applied at the anniversary of Housing Assistance Payment (HAP) contracts for which rents are to be adjusted using the AAF for those calendar months commencing after the effective date of the notice. The AAFs are applied to contracts in the Section 8 New Construction, Substantial Rehabilitation, and Moderate Rehabilitation programs and the Section 8 Loan Management and Property Disposition programs.
The current rents are multiplied by an inflationary factor to determine the new rent level for the contract. The inflationary factor for all of the metro areas is either at or above 1.0, meaning all of the contract rents will stay the same or increase.
