On November 2, 2017, HUD published the Operating Cost Adjustment Factors (OCAF) in the Federal Register. These factors are used for adjusting or establishing Section 8 rents under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA), as amended, for projects assisted with Section 8 Housing Assistance Payments. The factors are effective February 11, 2018 and can be found at www.gpo.gov/fdsys/pkg/FR-2017-11-02/pdf/2017-23901.pdf.
OCAFs are distinct from, and do not apply to the same properties as Annual Adjustment Factors (AAFs). AAFs are used to adjust contract rents for units assisted in certain Section 8 housing assistance payment programs during the initial (i.e., pre-renewal) term of the HAP contract and for all units in the Project-Based Certificate Program.
The OCAFs are published for each state and range from a low of 0.9 for Hawaii and the Pacific Islands to a high of 2.9 for Alaska.
Utility Allowance Factors for 2018, which may be used to adjust baseline utility allowances prepared in accordance with Housing Notice 2015-04, are also now available on HUDUser at www.huduser.gov/portal/datasets/muaf.html.