HOTMA Asset Limits and Over-Income Rules, by Year
HOTMA changed how a housing authority counts a family's assets and income. There is now a hard net-asset limit for eligibility, a de minimis threshold below which asset income is not imputed, a cap on non-necessary personal property, and a fixed grace period before an over-income family has to be dealt with. HUD re-publishes the dollar figures every January, so the year a determination is made decides which set applies.
The published amounts, by effective date
HUD re-publishes these every January. The determination date decides which row applies — not the date you run the calculation, which is the distinction that turns a clean file into a finding. Net asset cap: 24 CFR 5.618(a). Imputation threshold: 24 CFR 5.609(a)(2).
| Effective | Net asset cap | De minimis | Personal property | Passbook rate | Source |
|---|---|---|---|---|---|
| 2024 | $100,000 | $50,000 | $50,000 | 0.4% | HOTMA final rule base amounts (24 CFR 5.618(a), 5.609(a)(2), 5.603(b)) |
| 2025 | $103,200 | $51,600 | $51,600 | 0.45% | HUD CY2025 Inflation-Adjusted Values (Table 1), effective 2025-01-01 |
| 2026 | $105,574 | $52,787 | $52,787 | 0.4% | HUD CY2026 Inflation-Adjusted Values (Table 1), effective 2026-01-01 |
The clocks HOTMA starts
24 months over income
An over-income family gets a fixed grace period of consecutive months before the PHA must act. The over-income limit itself is 2.4× the very low income limit. Continued occupancy: 24 CFR 960.261.
6 months to act
Once the grace period ends the PHA has a bounded window to take action rather than an open-ended one. Public housing over-income rules: 24 CFR 960.507.
6 months to cure assets
A family over the net asset limit gets a bounded cure period, not immediate termination, and 24 CFR 5.618(c) gives the PHA discretion at reexamination.
Net family assets are defined at 24 CFR 5.603(b) and annual income at 24 CFR 5.609(a). Implementation guidance is Notice PIH 2023-27.
Common questions
- What is the HOTMA asset limit?
- A cap on net family assets for eligibility, set by 24 CFR 5.618(a) and inflation-adjusted by HUD each January. The table on this page shows each published vintage and the date it took effect, because the determination date decides which one applies — not the date you run the calculation.
- When is asset income imputed?
- Only above the de minimis threshold. Below it, a PHA does not impute income from net family assets; above it, imputation uses the passbook rate. The rule is 24 CFR 5.609(a)(2), and both the threshold and the rate move with HUD's annual table.
- Can a family self-certify their assets?
- Yes, below the threshold. 24 CFR 5.618 allows self-certification of net family assets under the published amount, which is what keeps a routine reexamination from becoming a documentation exercise for every household.
- How long can an over-income family stay?
- HOTMA sets a fixed grace period once a family's income has exceeded the over-income limit for consecutive months, after which the PHA must act. The limit itself is a multiple of the very low income limit. Public housing continued occupancy is at 24 CFR 960.507 and 960.261.
- What happens if a family is over the asset limit?
- There is a bounded cure period rather than immediate termination, and 24 CFR 5.618(c) gives the PHA discretion at reexamination. The specific window is shown on this page and is the one the Honestkey™ recertification engine applies.
- Which notice governs implementation?
- Notice PIH 2023-27 is the implementation guidance for the HOTMA income and asset provisions, alongside the codified rules at 24 CFR 5.603, 5.609 and 5.618.
What this page is
A reference, not legal advice. Every figure above is read from the same module the Honestkey™ agency tools compute with, and each names the rule it comes from so your staff can check it. Honestkey™ prepares and documents determinations — it does not submit to PIC or TRACS and it is not a substitute for HUD systems or your own counsel.