24 C.F.R. § 891.150
§ 891.150 Operating cost standards. (24 CFR Part 891)
Operative Text
HUD shall establish operating cost standards based on the average annual operating cost of comparable housing for the elderly or for persons with disabilities in each field office, and shall adjust the standard annually based on appropriate indices of increases in housing costs such as the Consumer Price Index. The operating cost standards shall be developed based on the number of units. However, under the Section 811 Program and for projects funded under §§ 891.655 through 891.790, the operating cost standard for group homes shall be based on the number of residents. HUD may adjust the operating cost standard applicable to an approved project to reflect such factors as differences in costs based on location within the field office jurisdiction. The operating cost standard will be used to determine the amount of the project assistance initially reserved for a project.
Under 24 CFR Part 891 § 891.150, HUD is required to set operating cost standards that reflect the average annual costs of running comparable housing for elderly persons or persons with disabilities, organized by HUD field office area. These standards are updated each year using indices such as the Consumer Price Index to account for rising housing costs. The standard is generally calculated per unit, except for group homes under the Section 811 Program, where it is calculated per resident instead. The resulting figure directly determines how much project assistance funding is initially set aside for a given housing project.
Plain English — not legal advice.
Owners and managers of HUD-assisted housing for the elderly or persons with disabilities should be aware that § 891.150 governs how HUD calculates the baseline funding reserved for their projects. Compliant operators generally maintain accurate records of unit counts—or resident counts for Section 811 group homes—since these figures feed directly into the operating cost standard calculation. Operators also monitor annual HUD adjustments to the standard, as location-based modifications within a field office jurisdiction can affect the assistance amount initially reserved for an approved project.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For residents of HUD-assisted elderly or disability housing, § 891.150 establishes the framework that determines how much federal assistance is allocated to keep a project financially viable, which can affect the overall quality and availability of that housing. If tenants have concerns about whether a project is receiving appropriate funding levels or whether HUD's standards are being applied correctly, they may raise those concerns with their local HUD field office. Tenant-rights organizations familiar with Section 811 and Part 891 programs can help residents understand how operating cost standards under § 891.150 relate to the conditions and services at their housing development.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.