2026 COLA Increase

The Social Security Administration (SSA) has officially announced the Cost-of-Living Adjustment (COLA) for 2026, setting the increase at 2.5%. This annual adjustment is designed to help Social Security beneficiaries keep pace with inflation and rising living costs.

When the Increase Takes Effect

The 2026 COLA increase becomes effective January 1, 2026. Beneficiaries receiving Social Security retirement, disability, or Supplemental Security Income (SSI) benefits will see the higher payment amounts reflected in their monthly benefits beginning in January.

Impact on Affordable Housing Program Eligibility

For households participating in, or applying for, affordable housing programs, it is important to note that the COLA-related income increase must be included when calculating annual income. Since Social Security benefits are a countable source of income, the adjusted benefit amount will factor into eligibility determinations and rent calculations for programs such as:

• HUD-assisted housing

• Housing Choice Voucher (Section 8) programs

• Public housing

• Other income-restricted affordable housing programs

Housing providers and administrators should ensure their income calculations reflect the updated benefit amounts as of January 1, 2026, in accordance with program requirements.

What Residents and Housing Providers Should Do

• Residents should review their updated Social Security benefit statements and report the new income amounts as required.

• Property managers and compliance staff should update income verification processes to account for the 2.5% COLA when certifying or recertifying household income.

Staying informed about COLA adjustments helps ensure accurate income determinations and continued compliance with affordable housing program regulations.