The interest rate for Public Housing Fund Loans in the United States is not uniformly applied nationwide. While the U.S. Department of Housing and Urban Development (HUD) sets a base interest rate for these loans, state and local housing authorities may adjust terms based on financial conditions and funding availability.

HUD determines the base interest rate for Public Housing Fund Loans through a national formula tied to the 10-year Treasury note yield plus a fixed margin. As of 2023, this rate is standardized across all states to ensure equitable access to federal resources. However, local housing authorities can negotiate additional fees, variable adjustments, or repayment schedules depending on their fiscal status. For example, in 2022, HUD reported that 15 states applied localized adjustments to the base rate, often influenced by state-specific capital needs or bond market dynamics. Data from the Federal Housing Finance Agency (FHFA) shows that while the national average rate for these loans was 4.25% in 2023, deviations ranged from 3.8% to 4.8% across states. This variation arises because HUD permits flexibility to accommodate regional economic disparities, ensuring that housing authorities in higher-cost areas can secure financing without prohibitive rates. Consequently, the interest rate framework is national in principle but adaptable in practice to meet diverse local requirements.