On October 5, 2016, HUD published a Notice of Certain Operating Cost Adjustment Factors (OCAF) for 2017. The Notice is effective for properties with Project-based rental assistance contracts under Section 8 with an anniversary date on or after February 11, 2017.   Contract rents are adjusted by applying the OCAF to that portion of the rent attributable to operating expenses exclusive of debt service. OCAFs are calculated as the sum of weighted average cost changes for wages, employee benefits, property taxes, insurance, supplies and equipment, fuel oil, electricity, natural gas, and water/sewer/trash using publicly available indices.   Following are the individual state Operating Cost Adjustment Factors for 2017:

• Alabama: 2.1%
• Alaska: 0.5%
• Arizona: 2.1%
• Arkansas: 2.3%
• California: 2.2%
• Colorado: 1.7%
• Connecticut: 1.1%
• Delaware: 1.7%
• District of Columbia: 2.0%
• Florida: 2.0%
• Georgia: 2.0%
• Hawaii: 0%
• Idaho: 2.3%
• Illinois: 1.5%
• Indiana: 2.0%
• Iowa: 2.1%
• Kansas: 2.0%
• Kentucky: 1.9%
• Louisiana: 1.8%
• Maine: 1.4%
• Maryland: 2.1%
• Massachusetts: 1.8%
• Michigan: 1.7%
• Minnesota: 1.8%
• Mississippi: 2.1%
• Missouri: 2.2%
• Montana: 2.1%
• Nebraska: 2.3%
• Nevada: 2.2%
• New Hampshire: 1.8%
• New Jersey: 1.3%
• New Mexico: 1.6%
• New York: 0.4%
• North Carolina: 2.0%
• North Dakota: 2.4%
• Ohio: 1.9%
• Oklahoma: 2.0%
• Oregon: 2.2%
• Pacific Islands: 0.0%
• Pennsylvania: 2.0%
• Puerto Rico: 1.9%
• Rhode Island: 2.1%
• South Carolina: 2.1%
• South Dakota: 2.1%
• Tennessee: 2.0%
• Texas: 2.0%
• Utah: 2.2%
• Vermont: 0.6%
• Virgin Islands: 2.0%
• Virginia: 2.0%
• Washington: 2.2%
• West Virginia: 2.6%
• Wisconsin: 1.8%
• Wyoming: 2.2%

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