HOTMA Guide for Landlords
The 2024 Section 8 rule changes that actually affect you — income recerts, asset caps, NSPIRE inspections, and rent reasonableness — in plain English.
HOTMA at a glance
The 2016 Housing Opportunity Through Modernization Act changed how PHAs calculate tenant income, what assets count, and how units are inspected. Most provisions took effect in 2024. Here’s what materially affects you as a landlord/investor.
Tenant income recertifications happen LESS often
2024-01-01 (PHA discretion through 2025)Annual recerts move to a fixed PHA calendar, with interim recerts only when income drops ≥10% or rises ≥10% (PHA discretion). The old "report any change" rule is gone.
Hard asset cap added
2024-01-01Tenant households are now ineligible if net family assets exceed $100,000 or they own real property suitable as a primary residence. Replaces the previous "no cap, just imputed income" approach.
Imputed asset income only above $50K
2024-01-01PHAs no longer impute investment income on family assets under $50,000. Only assets above that threshold count toward HUD's income calc.
Self-employment income computed cleanly
2024-01-01HOTMA standardizes how PHAs handle Schedule C / 1099 income, allowing reasonable business expense deductions. Previously PHAs disagreed wildly.
Last reviewed 2024-12-01. Not legal advice — PHA implementation varies; verify specifics with the housing authority.