On February 3, HUD released the 2026 Operating Cost Adjustment Factors (OCAF) for each state, as well as DC, the Pacific Islands, Puerto Rico, and the Virgin Islands. These factors are used for adjusting contract rents for project-based Section 8 programs renewed under the Multifamily Assisted Housing Reform and Affordability Act (MAHRA) and for some project-based voucher contracts. HUD examines nine factors, including energy costs, employee wages and benefits, goods, taxes, and insurance, and measures how much such expenses have increased in the last year. The OCAF allows owners to keep up with inflation and other project costs.
Overall, the average OCAF was 5.2%, with a regional standard deviation of 1.4%. Maine’s factor was 3.3% and represented the smallest increase, while the Virgin Islands will experience a staggering 12.3% increase. The Virgin Islands appears to be an outlier; the next highest OCAF is for Louisiana, which is set at 9.8%.
The OCAFs were marginally higher, on average, than in 2025, and likely reflect increases in energy prices nationwide. As always, we hope that these OCAFs help combat owners’ struggles to keep units in good condition and to continue to pay workers a fair wage for their hard work
Operating Cost Adjustment Factors for 2026
Outliers marked in green and red.
| State/Territory | Rate (%) |
|---|---|
| Alabama | 5.9 |
| Alaska | 5.0 |
| Arizona | 4.4 |
| Arkansas | 6.0 |
| California | 4.9 |
| Colorado | 4.5 |
| Connecticut | 4.3 |
| Delaware | 4.4 |
| District of Columbia | 5.1 |
| Florida | 8.2 |
| Georgia | 5.4 |
| Hawaii | 4.6 |
| Idaho | 4.6 |
| Illinois | 5.1 |
| Indiana | 5.0 |
| Iowa | 4.6 |
| Kansas | 5.2 |
| Kentucky | 5.1 |
| Louisiana | 9.8 |
| Maine | 3.3 |
| Maryland | 4.8 |
| Massachusetts | 4.8 |
| Michigan | 4.4 |
| Minnesota | 4.9 |
| Mississippi | 6.4 |
| Missouri | 5.1 |
| Montana | 4.0 |
| Nebraska | 4.9 |
| Nevada | 3.8 |
| New Hampshire | 3.6 |
| New Jersey | 4.9 |
| New Mexico | 6.3 |
| New York | 4.7 |
| North Carolina | 4.6 |
| North Dakota | 4.5 |
| Ohio | 4.9 |
| Oklahoma | 6.4 |
| Oregon | 4.8 |
| Pacific Islands | 4.6 |
| Pennsylvania | 4.7 |
| Puerto Rico | 6.1 |
| Rhode Island | 3.8 |
| South Carolina | 6.2 |
| South Dakota | 4.4 |
| Tennessee | 4.9 |
| Texas | 6.4 |
| Utah | 4.1 |
| Vermont | 4.6 |
| Virgin Islands | 12.3 |
| Virginia | 4.9 |
| Washington | 5.2 |
| West Virginia | 5.8 |
| Wisconsin | 4.4 |
| Wyoming | 4.4 |
| United States | 5.1 |