The Rural Housing Service (RHS), under the U.S. Department of Agriculture (USDA), has issued a final rule updating income and asset calculation requirements for Multifamily Housing (MFH) programs to align with the Housing Opportunity Through Modernization Act of 2016 (HOTMA). The rule became effective April 13, 2026.

The USDA RHS has finalized updates to 7 CFR 3560.153 that directly impact how income and assets are calculated for properties participating in Section 515 Rural Rental Housing and Section 514/516 Farm Labor Housing programs.

These updates align RHS requirements with HUD’s HOTMA implementation and include:

• Annual income must now be calculated using updated HUD standards (24 CFR 5.609 (a) and (b))
• Net family assets must be calculated using HUD guidance (24 CFR 5.603(b))

These changes standardize income and asset calculations across federal housing programs, improving consistency—but also requiring careful implementation at the property level.

Why This Matters to Housing Providers

This rule directly affects tenant certifications, eligibility determinations, and ongoing compliance. Misapplication of the new income or asset rules could result in incorrect rent calculations, improper subsidy levels, or findings during audits or reviews.

Who It Impacts

• Owners and agents of USDA MFH properties (Section 515, 514/516)
• Compliance staff responsible for certifications and file reviews
• Property managers and leasing teams conducting annual and interim recertifications

Risks of Non-Compliance

Failure to properly implement these changes may lead to:

• Incorrect tenant rent or subsidy calculations
• Findings during USDA reviews or audits
• Repayment obligations or financial penalties
• Increased administrative burden to correct errors
• Potential impact on resident eligibility and program integrity

As outlined by RHS, these requirements are now part of federal regulation under 7 CFR 3560.153, making compliance mandatory.

How CMS Can Support You

Navigating HOTMA-aligned changes can be complex—especially as requirements evolve across agencies.
CMS is here to support you with:

• Training on updated income and asset calculation requirements
• Practical guidance on implementation at the property level
• Answers to compliance questions and scenario-based challenges
• Ongoing support to ensure confidence and accuracy in certifications

Staying proactive now will help reduce risk and ensure a smooth transition. Reach out to CMS for guidance and support in navigating HOTMA aligned requirements.