FY2026 YTDDOD: $842.3B (+2.4% YoY)HHS: $156.7B (-1.2% YoY)DHS: $68.4B (+5.1% YoY)NASA: $25.8B (+3.7% YoY)DOE: $48.2B (-0.8% YoY)VA: $301.4B (+8.2% YoY)|Active Opportunities: 47,832Expiring 7d: 2,341|Data via USASpending.gov
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Set-Asides

SDVOSB vs HUBZone: Which Set-Aside Is Right for You?

Comparing two popular small business set-aside programs.

Fed-Spend Research Team•January 18, 2026•7 min read

Introduction

Two of the most powerful federal set-aside programs are SDVOSB (Service-Disabled Veteran-Owned Small Business) and HUBZone (Historically Underutilized Business Zones). Both offer significant advantages for federal contracting—but which one is right for your business?

In this guide, we'll compare both programs head-to-head using real contract data from Fed-Spend.

SDVOSB Overview

The SDVOSB program supports small businesses owned and controlled by service-disabled veterans.

Eligibility Requirements:

  • At least 51% owned by one or more service-disabled veterans
  • Daily operations controlled by service-disabled veterans
  • Meet SBA size standards for your NAICS codes
  • Service-connected disability rating from VA
  • Key Benefits:

  • Sole-source contracts up to $5 million
  • Set-aside competitions limited to verified SDVOSBs
  • VA preference - VA has 3% SDVOSB contracting goal
  • Evaluation credit on some competitive procurements
  • HUBZone Overview

    The HUBZone program supports small businesses in historically underutilized areas to stimulate economic development.

    Eligibility Requirements:

  • Principal office in a HUBZone
  • At least 35% of employees reside in HUBZones
  • Meet SBA size standards
  • Owned by U.S. citizens
  • Key Benefits:

  • Sole-source contracts up to $4 million (goods) / $7 million (manufacturing)
  • 10% price evaluation preference in full & open competitions
  • Set-aside competitions limited to HUBZone businesses
  • Subcontracting opportunities from large contractors
  • Head-to-Head Comparison

    FactorSDVOSBHUBZone
    FY2025 Contract Volume$28.4B$12.1B
    Number of Certified Firms18,2008,400
    Avg Contract Value$1.56M$1.44M
    Top AgencyVA ($9.2B)Army ($2.8B)
    Sole-Source Threshold$5M$4M/$7M
    Verification RequiredYes (VetBiz)Yes (SBA)
    Location RequirementNoYes (35% employees)
    Certification Time60-90 days90-120 days

    Contract Volume Analysis

    Based on Fed-Spend data for FY2025:

    SDVOSB Top Agencies:

  • VA - $9.2B (32% of all SDVOSB contracts)
  • DOD - $8.1B (29%)
  • GSA - $3.4B (12%)
  • DHS - $2.1B (7%)
  • HHS - $1.8B (6%)
  • HUBZone Top Agencies:

  • Army - $2.8B (23%)
  • Navy - $2.1B (17%)
  • Air Force - $1.9B (16%)
  • VA - $1.4B (12%)
  • GSA - $1.1B (9%)
  • Which Should You Choose?

    Choose SDVOSB If:

    You're a service-disabled veteran (or owned by one)
    You want to target VA contracts
    Location flexibility is important
    You want faster certification
    Your industry has strong VA/DOD presence

    Choose HUBZone If:

    Your business is located in an underutilized area
    You can maintain 35% HUBZone employees
    You want the 10% price preference on open competitions
    Manufacturing is your primary business
    You're already in a qualifying zone

    Why Not Both?

    Many businesses qualify for multiple certifications. If you're a service-disabled veteran with an office in a HUBZone, you could potentially qualify for both programs—dramatically expanding your opportunity pool.

    The Fed-Spend Advantage

    Fed-Spend tracks all SDVOSB and HUBZone set-aside opportunities in real-time:

  • Filter by set-aside type to see only relevant opportunities
  • Track agency spending by certification type
  • Set alerts for new SDVOSB or HUBZone opportunities
  • Analyze competition to see how many firms bid on similar contracts
  • Conclusion

    Both SDVOSB and HUBZone offer significant advantages for federal contracting. The right choice depends on your eligibility, location, and target agencies.

    SDVOSB offers more contract volume overall, especially at the VA.

    HUBZone offers unique price preferences that can tip competitive bids in your favor.

    If you qualify for both, pursue dual certification to maximize your opportunity pool.


    Ready to find set-aside contracts? Search SDVOSB opportunities → | Search HUBZone opportunities →

    Related Guides

    More from the Set-Aside Scanner series

    What Is a Set-Aside Contract? The Definitive Guide8(a) Certification: Is It Worth It in 2026?8(a) Contract Opportunities: How to Find and Win ThemSDVOSB Contract Opportunities: Where $28.6B GoesHUBZone: The $13.2B Program Most OverlookWOSB: The $30.1B Women-Owned Market

    Find Set-Aside Opportunities Matching Your Certifications

    Search 8(a), SDVOSB, HUBZone, and WOSB opportunities across all federal agencies.

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