2027 Social Security COLA Announced

On October 14, 2026, the federal government announced the Social Security 2027 Cost of Living Adjustment (COLA) at 3.6% effective January 1, 2027. Individuals who receive SS (Social Security) will receive a mailing in late November or early December indicating their new benefit amount.

This increase affects all federal benefits (SS, Supplemental Security Income [SSI], Civil Service Pensions, Railroad Retirement, and Veteran’s benefits).

Managers of affordable housing properties are required to determine income for eligibility and need to begin using this increase now in projecting income for applicants and residents. Failing to accurately calculate anticipated income using the newly announced COLA is a frequent compliance issue. It is very important when moving a new household into your site that they are income eligible.

Some important things to remember when calculating the increase and documenting the tenant file are as follows:

1. A copy of the official Social Security COLA increase letter needs to be in the tenant file.
2. Any move-in that would be scheduled for October 14, 2026, or later must project annual household income using the 2027 COLA for federal income benefits that are affected by this increase.
3. Tenant Recertifications that have not been signed or dated prior to October 14, 2026, must include the 2027 COLA in the income calculation.

For example, November 1, 2026, recertification that has NOT been completed on or before October 14, 2026, this includes being signed and dated by both the owner and the tenant, will need to include the 2027 COLA.

However, a recertification for November 1, 2026, that has been completed, including being signed and dated by both the owner and tenant prior to October 14, 2026, will not need changes to the Tenant Income Certification. (This is a huge advantage to properties that complete their recertifications early in the 90-120-day recertification period.)

4. The calculation is done as follows for a Move-In or Recertification that has an effective date of November 1, 2026:

Multiply current monthly benefit X 2 (this is the first 2 months in the certification

year – November & December)

Calculate current monthly benefit X 3.6% (2027 COLA)

Add amount of increase into the current monthly benefit

Multiply new monthly benefit X 10 (months remaining in certification period – January through October 2027)

Add the 2 months at the current rate + 10 months at the new rate =

Projected Annual Income from November 1, 2026, to October 31, 2027.

EXAMPLE:

Current rate is $998.90

$998.90 X 2 = $1997.80 income for November 1, 2026 & December 31, 2026

$998.90 X 3.6% (increase) = $35.96 + $998.90 = $1034.86 new monthly benefit

$1034.86 X 10 months = $10,348.60 (January 1, 2027, through October 31, 2027)

$1997.80 + $10,348.60 = $12,346.40 Projected Annual Income

If the move-in or recertification effective date is December 1, 2026 – you would calculate 1 month at the current rate and 11 months at the new rate.

Move-Ins and Recertifications with an Effective Date of January 1, 2027, and later will use 12 months at the new rate.

Owners and Management Agents should be well trained in understanding the rules and regulations of the affordable housing programs pertaining to their properties as they relate to maintaining compliance. MLCM offers consulting services and training regarding various affordable housing programs. For more information on these services, don’t hesitate to contact us.

The information presented in this article is intended solely for informational purposes and should not be construed as consulting advice from M&L Compliance Management LLC.

About the Author