Complete Guide to Using Our HUD OCAF Worksheet
This step-by-step guide will help you understand how to use our OCAF calculator to determine HUD rent adjustments accurately. The Operating Cost Adjustment Factor (OCAF) is used to adjust rents for projects with expiring Section 8 contracts and budget-based rent increase requests.
How to Use the OCAF Calculator
Step 1: Calculate the current Section 8 Rent Potential for EXPIRING contracts
Start by entering information about your unit types, quantities, and current contract rents:
- Enter each unit type in the "Unit Type and Contract and/or Stage" column
- Input the number of units for each type
- Enter the current Section 8 contract rent for each unit type
- The calculator will automatically compute the current rent potential
Tip: Include all units covered under the expiring Section 8 contract. If you need more rows, use the "Add Another Unit Type" button.
Step 2: Enter Additional Property Information
Next, you'll need to provide some additional information about your property:
- Total Annual Rent Potential For Non-Expiring Section 8 Contracts
- Total Annual Rent Potential For Non-Sec. 8 Units
- Select your state (which determines the OCAF factor)
- Enter your property's Current Debt Service
Tip: The OCAF factor is determined by HUD annually for each state. Our calculator uses the most current OCAF factors.
Step 3: Review Your Results
After clicking "Calculate," you'll receive:
- A detailed breakdown of the OCAF calculation
- The calculated increase factor
- A table showing your adjusted rents for each unit type
Tip: You can export these results as PDF or Excel files for your records.
Tips for Accurate OCAF Calculations
- Verify your data: Double-check all inputs, especially current contract rents and unit counts
- Use current OCAF factors: Make sure you're using the most recent OCAF factors published by HUD
- Include all applicable units: Be thorough in including all units covered by the expiring Section 8 contract
- Consult with experts: For complex situations, consider consulting with a HUD expert or housing professional