FY2027 H-1B Lottery: How the Weighted Selection System Works
Updated 2026-04-23 · Based on DHS final rule published December 29, 2025
What Changed?
For years, the H-1B cap lottery was a pure random draw — every registrant had roughly the same ~30% chance regardless of salary. The new system, finalized via Federal Register rule on December 29, 2025, introduces wage-weighted selection.
Each registration now receives a number of "entries" based on its wage level relative to the prevailing wage for that occupation and geographic area:
Selection Probability by Wage Level
Based on DHS projections and analysis of registration patterns:
| Wage Level | Old System | New System | Change | What This Means |
|---|---|---|---|---|
| Level I | ~30% | ~16% | -48% | Nearly half as likely to be selected |
| Level II | ~30% | ~31% | +3% | Roughly the same as before |
| Level III | ~30% | ~45% | +55% | Significantly better odds |
| Level IV | ~30% | ~61% | +107% | More likely selected than not |
Who Benefits and Who Doesn't
Winners:
- Big tech companies paying market rates — their engineers easily qualify for Level III-IV
- Senior/principal engineers at any company — high salaries naturally reach higher levels
- Specialized roles (ML engineers, quant researchers, senior PMs) — high compensation
- Financial services — banking/finance H-1B salaries tend toward upper levels
Losers:
- IT consulting/staffing firms — historically file at Level I-II wages; selection rates roughly halved
- Entry-level positions — new graduates at standard starting salaries face much longer odds
- Lower cost-of-living areas — positions with nationally competitive but locally high wages may still register as Level I in expensive metros
Strategies to Maximize Your Lottery Chances
1. Negotiate the Highest Possible Base Salary
The difference between Level I and Level II is the difference between 1 and 2 lottery entries. Even a $5,000-$10,000 salary increase could push you to the next level and double your odds.
2. Understand Geographic Wage Arbitrage
Prevailing wage thresholds vary massively by metro area. A $130,000 salary for a Software Developer is:
- Level I in San Jose (threshold: $149K) — 1 entry
- Level II in Seattle (threshold: $117K) — 2 entries
- Level II in New York (threshold: $103K) — 2 entries
For remote workers, the work location determines the wage level. This creates significant strategic considerations.
3. Choose the Right SOC Code
Different SOC codes have different wage thresholds. Work with your employer and immigration attorney to select the most appropriate — and ideally most favorable — SOC code that accurately reflects the position's duties.
4. Avoid Multiple Worksites When Possible
USCIS uses the lowest wage level across all listed work locations. If one location drags down your level, consider whether the position truly requires that worksite.
5. Time Your Filing
OFLC updates prevailing wages annually. New thresholds may shift your level up or down. Check current rates before your employer files.
H-1B Cap Numbers
The annual H-1B cap remains unchanged:
- 65,000 regular cap visas
- 20,000 additional for U.S. master's degree or higher holders
- Cap-exempt employers (universities, research institutions, nonprofits) are not subject to the lottery
Check Your Wage Level
Use our free Wage Level Calculator to see your level and lottery odds. Or read our H-1B Wage Level Guide for a complete explainer.