On Friday, October 24, the Social Security Administration (SSA) announced that the Cost-of-Living Adjustment (COLA) will be 2.8%, effective January 1, 2026. This year’s adjustment is a touch higher than 2025’s 2.5% increase, but 0.4% less than the 2024 adjustment.
The average Social Security payment is approximately $1,976 per month, so a 2.8% COLA translates to roughly $56 more per month on average.
To calculate an applicant’s or resident’s updated benefit, take the amount they’ve been receiving this year and multiply it by 2.8%. That result represents how much more they will receive in 2026. Add that number to their 2025 monthly benefit to arrive at the new Social Security amount for 2026.
If your property is subsidized by a HUD Program, like Section 8, any 2026 certifications you are currently working on that are effective January through April must incorporate the COLA in annual income calculations. You are not required to adjust any 2026 certifications that you have already completed and finalized.
A little perspective: the largest COLA in the past half-century was 14.3% in 1980. There was no COLA in 2010, 2011, or 2016. By comparison, a 2.8% increase is well within the historical norm.