26 Year History of HUD OCAF's by State, Territory, and the US.

Following HUD's publication of the FY 2024 OCAF, I have created a 6 page PDF file HERE with the 26 year OCAF history for every state, territory, and the US from FY 1999-FY 2024. 

The PDF file also includes columns showing for each state, territory, and the US: 

• Their average OCAF over the 26 year period, and for the last 3 years.
• Their FY with the highest OCAF.
• Their rank of the FY 2024 OCAF change among the 26 years.

HUD does not publish this data and I haven't found it elsewhere. 

I also pasted below the Oregon OCAF's from FY 1999 to FY 2024. 

Note that the Oregon FY 2024 OCAF is lower than FY 2023 but still above the average for the last 26 years, and the 4th highest in this 26 year period. 

As I noted previously increases in OCAF do NOT increase tenant rents, but do increase subsidy needs. 

Also OCAF increases exclude debt service so a 4.9% OCAF increase does NOT apply to the full contract or Fair Market Rent, but only to the operating expenses for that project.  

Courtesy, Oregon Housing Blog. 

HUD FY 2024 Oregon OCAF DROPS TO 4.9%%, Still 4th Highest in 26 Years.

HUD has published the FY 2024 operating cost adjustment factors (OCAF) HERE. 

The PDF file includes an explanation of the sources used to calculate OCAF as well as state and US OCAF's. The effective date is for contracts with a contract anniversary on or after February 11, 2024

HUD uses the OCAF to adjust annual subsidized rents in project based section 8 developments, and also for many public housing developments whose public housing operating subsidy has been converted to the Rental Assistance Program (RAD). 

The FY 2024 OCAF for Oregon is 4.9%, the fourth highest in 1he last 26 years (the 2009 Oregon OCAF was the highest at 7.1%).  The Oregon 2023 OCAF was higher at 5.6%.   

The US OCAF was 5.3%, higher than the 5.1% projected by HUD in its fiscal year 2024 congressional budget justification, but still LOWER than the 2023 US OCAF of 6.1%. I count only 7 states with a 2024 OCAF higher than their FY 2023 OCAF.  

Since OCAF is NOT applied to debt service, over time rent increases using OCAF can total less than rent increases using HUD FMRs.(This can change if budget based or rent comparability studies are used). Generally HUD rent increases increase subsidy needs, NOT the tenant share of rent. 

More to come in an upcoming post. 

Originally created and posted on the Oregon Housing Blog.