HUD has set the passbook savings rate for 2027 at 0.38%, effective January 1, 2027. The new rate is down from 0.40% in 2026 and 0.45% in 2025.
HUD published the rate in August with its 2027 annual inflationary adjustments for programs covered by the Housing Opportunity Through Modernization Act (HOTMA).
How the passbook rate is used
Affordable housing programs use the passbook savings rate to calculate imputed income from assets. It estimates what a household’s assets could earn if invested in a typical way.
Under HOTMA, programs impute income only for individual assets whose actual income can’t be determined, such as real property that doesn’t generate rent, collections, and plots of land. The calculation applies only when a household’s total net family assets exceed HUD’s threshold, which rises to $54,898 in 2027, up from $52,787 in 2026:
Cash Value of Assets with Undeterminable Income × Passbook Savings Rate = Imputed Income from Assets
HUD updates the rate each year using the Federal Deposit Insurance Corporation (FDIC) National Deposit Rate for savings accounts. The methodology is described in Notice H 2023-10/PIH 2023-27.
Who uses the 2027 rate
The 0.38% rate applies only to programs and properties already complying with HOTMA Sections 102 and 104. These include Section 8 PBRA, Housing Choice Vouchers, Public Housing, HOME, HTF, HOPWA, and several other HUD programs. Sites not yet implementing those sections do not use the new figures.
HUD’s 2027 release also raises the asset limitation to $109,797 and adjusts several income exclusions and deductions. The full tables are available on HUD User.
As certifications with effective dates on or after January 1, 2027 approach, NCHM reminds stakeholders to confirm that their software reflects the 0.38% rate and updated thresholds, and to stay vigilant about which rate applies to each year’s certification. Questions about the adjustments can be sent to HUD at mfh_hotma@hud.gov.