Revision 26-1; Effective March 1, 2026

In-kind support and maintenance (ISM) is a form of unearned income. Federal requirements mandate that ISM, along with other types of unearned income, be considered when determining Medicaid eligibility.

Note: Food is not included in ISM calculations. Food is considered when determining which rule to use when assessing shelter assistance as follows:

• Follow the one-third reduction rule if both food and shelter are provided in another person’s household.
• Follow the presumed maximum value (PMV) rule If only shelter is provided, or food is provided outside the household. 

Do not consider ISM in budgeting for Medicaid Buy-In for Children (MBIC).

Related Policy

Budget Reference Chart, Appendix XXXI

E-8110 One-Third Reduction Rule

Revision 26-1; Effective March 1, 2026

Reference: Appendix XIV, Chart A

Use the One-Third Reduction Rule instead of calculating the actual dollar value of in-kind support and maintenance (ISM). 

Count one-third of the federal benefit rate (FBR) as unearned income if a person, or a person and the person's eligible spouse:

• lives in another person's household for a full calendar month, except for temporary absences; 
• receives shelter from others living in the household; and
• others within the household pay for or provide all their meals.

Example: Bess Black lives in her son's home. There are no other household members. Monthly household expenses total $650 ($325 pro rata share). Mrs. Black contributes nothing toward household expenses. Count one-third of the FBR as ISM.

This rule applies in full or not at all. Do not apply any income exclusions to the reduction amount, if it applies. However, apply appropriate exclusions to any other earned or unearned income received.

Do not count any other ISM received, when the one-third reduction rule applies.

E-8120 Presumed Maximum Value Rule

Revision 26-1; Effective March 1, 2026

Use the Presumed Maximum Value (PMV) Rule, if a person receives ISM and the one-third reduction rule does not apply.

Instead of determining the actual dollar value of any shelter a person receives, presume it is worth a maximum value:

• One-third of the federal benefit rate (FBR)
• Plus the general income exclusion ($20)

Note: Food is no longer included in ISM calculations. It must still be considered to determine which rule to apply.

A person may show that the value of the shelter received is less than the presumed maximum value. Do not use the PMV Rule if the person demonstrates either of the following: 

• the current market value of any shelter received, minus any payment made, is less than the presumed maximum value; or
• the actual amount paid by someone else is less than the presumed maximum value.

Use the PMV amount as unearned income if:

• the person chooses not to question the presumed value; or
• the presumed value is less than the actual value of the shelter the person receives.

Use the actual value of the shelter received if the person shows it is less than the presumed maximum value.

Note: A religious order has an express obligation to provide full support and maintenance for members who have taken a vow of poverty. In such cases, ISM must be developed using the PMV Rule. The income turned over by the member to the order is considered to fulfill the vow of poverty and is not treated as a contribution toward the food and shelter received.

E-8121 Community Attendant Services

Revision 26-1; Effective March 1, 2026

Use the Presumed Maximum Value (PMV) Rule: count 1/3 FBR + $20 as unearned income if a person is:

• applying for or receiving Community Attendant Services (CAS); and 
• receives in-kind support and maintenance.

If the person is income-eligible, no further development is required. If applying the PMV results in ineligibility, the person must:

• be given an opportunity to rebut; and 
• show that the actual value of the shelter received is less than the presumed maximum. 

Example: Jim Morgan, a CAS applicant, lives in his sister’s household, which includes her husband and child. He does not pay his pro rata share of household expenses. Count 1/3 FBR + $20 as ISM. If he is income-eligible, no further development is necessary. If this results in ineligibility, Mr. Morgan must be given an opportunity to rebut and show that the actual value is less. Monthly household expenses total $1,050 (pro rata share: $262.50). Mr. Morgan contributes $200 per month toward general household expenses. The actual value is $62.50 ($262.50-$200).

Note: No support and maintenance (S/M) for Home and Community-Based Services waivers.

E-8130 Support and Maintenance (S/M) Items

Revision 26-1; Effective March 1, 2026

What Is S/M?

• Electricity
• Garbage removal
• Gas
• Heating fuel such as, coal, wood and butane
• Sewer
• Mortgage 
• Property insurance required by mortgage holder
• Real property taxes, less any tax rebate credit
• Rent
• Sewer
• Shelter or room
• Water

What Is Not S/M?

• Cable TV
• Credit card bills
• Food and board
• General upkeep on home
• Lawn maintenance
• Life insurance premiums
• Medical care
• Paint for the house
• Phone bill, including basic service plus extra services and long distance
• Repair of roof and plumbing
• Transportation
• VA clothing allowance for medical reasons
• Value of Supplemental Nutrition Assistance Program (SNAP) food benefits

E-8140 Exceptions to Counting Support and Maintenance (S/M) Income

Revision 26-1; Effective March 1, 2026

The general rule is to count S/M when a person receives shelter without payment, no matter who is liable for the cost. 

There are many exceptions to the general rule. The shelter received is not counted as S/M when an exception applies. Some exceptions are based on federal law which specifically exclude the value of certain types of shelter from income. Other exceptions are due to when shelter received does not meet the definition of income under federal regulations.

Do not count S/M if the person receives one of the following shelter assistance that:

• Is specifically excluded by federal law, such as the Disaster Relief and Emergency Assistance Act. Refer to E-2000, Exempt Income.
• Meets the criteria for infrequent or irregular unearned income. Refer to E-9000, Infrequent or Irregular Income.
• Has no current market value.
• Is given under a governmental medical or social service program. E-1700, Things That Are Not Income.
• Is need-based assistance from a state or local government. Refer to E-2000, Exempt Income.
• Is given by someone in the same household whose income is subject to deeming.
• Is received at school by a child under 22 who is temporarily absent from the parental household. 
• Is received during a temporary absence.
• Is a replacement of a lost, damaged or stolen resource including temporary housing. Refer to E-1740, Miscellaneous Things That May Not Be Income, and E-2000, Exempt Income.
• Is excluded under an approved plan for self-support.
• Is received due to credit life or credit disability policy payments. Refer to E-1740. 
• Is received during medical confinement in an institution.

Support and maintenance is not included as income in the eligibility budget if the person is either:

• In an institutional setting and eligibility is being tested for a Home and Community-Based Services waiver program Note: Community Attendant Services is not a Home and Community-Based Services waiver program.
• In an institutional setting for the month but entered after the first of the month.

Example: Mr. John Bono lives in his own home. His daughter pays his garbage removal bill quarterly, totaling no more than $20. This meets the definition of infrequent or irregular income. It is not counted in the eligibility budget.

Support and maintenance is not included if the person:

• lives with a deemor such as an ineligible spouse or parent and there are no non-deemors in the household;
• lives in a commercial room-and-board establishment;
• is placed in personal care, adult foster care or supervised living by a public agency, such as Adult Protective Services (APS) or HHSC; or
• pays their pro-rata share of all household expenses.

Example: Alice Beckman lives with her son in his home. Monthly household expenses total $350 ($175 pro rata share). Ms. Beckman contributes $185 per month toward general household expenses. There is no S/M because Ms. Beckman pays more than her pro rata share of general household expenses.

Support and maintenance is not included if the person:

• lives in a public assistance household, defined as a household where at least one other household member receives cash, vendor payments, or assistance from one of the following:
  • Supplemental Nutrition Assistance Program (SNAP)
  • Temporary Assistance for Needy Families (TANF);
  • Supplemental Security Income (SSI);
  • Refugee Assistance Act of 1980;
  • Bureau of Indian Affairs (BIA) general assistance;
  • State or local government income maintenance programs;  
  • Veterans Affairs (VA) pension for veterans or widows;
  • VA dependency and indemnity compensation (DIC) for parents; or
  • Disaster Relief Act of 1974; or
• receives free use of land where their shelter is located, or free use of shelter situated on land they own.

Example: Marcie Bennett lives in her own mobile home on land owned by her daughter.  She pays all food and utility expenses. No S/M applies because the use of land alone is not a shelter cost.

Example: Janet Smith lives in a mobile home owned by her daughter, on a lot Janet owns. Her daughter does not charge rent. There is no S/M because the use of shelter alone, but not the land, is not a shelter cost.

E-8150 Food, Clothing or Shelter as Wages

Revision 09-4; Effective December 1, 2009

If a person receives food, clothing or shelter that constitutes wages or remuneration for work, this is earned income valued at its current market value (CMV) or current market rental value (CMRV).

In this situation, the principles of S/M do not apply; however, the earned income exclusions of $65 and one-half the remainder do apply, unless eligibility is being determined under the institutional income limit.

Example: Joe Ball works as an apartment manager. His employer pays him $300 per month in cash wages and provides a free room, which has a monthly rental value of $200. Because provision of the room by Mr. Ball's employer constitutes wages, Mr. Ball receives $500 in earned income each month. This in-kind earned income in the form of shelter is valued at its CMRV ($200), and the one-third reduction rule and the one-third reduction + $20 rule do not apply. The earned income exclusions of $65 and one-half the remainder apply to Mr. Ball's total earnings of $500 ($300 cash wages + $200 free room), unless eligibility is being determined under the institutional income limit.

E-8160 Living Arrangement

Revision 09-4; Effective December 1, 2009

Use a person’s living arrangement to determine if S/M is being received and whether the S/M is to be valued under the one-third reduction rule or under the one-third reduction + $20 rule. Some common living arrangements are:

• noninstitutional care;
• home ownership;
• rental liability, including flat fee for room and board;
• public assistance (PA) households (that is, presumed sharing);
• separate consumption;
• separate purchase of food;
• sharing;
• earmarked sharing; and
• home of another.

E-8210 Household of Another Person

Revision 09-4; Effective December 1, 2009

E-8211 Contributing Less Than Pro-Rata Share

Revision 09-4; Effective December 1, 2009

Reference: Appendix XIV, Chart A

If a person contributes less than his or her pro-rata share of general household expenses, use the one-third reduction rule. No opportunity for rebuttal is offered.

Example: Alice Beckham lives with her son in his home. General household expenses total $350 ($175 pro-rata share). Mrs. Beckham contributes only $125 per month. Count 1/3 FBR as support and maintenance.

E-8212 Contributing an Earmarked Share of Shelter

Revision 26-1; Effective March 1, 2026

Apply the one-third reduction rule if a person contributes a specific amount for shelter, but the amount is less than the person's pro rata share. No rebuttal is offered.

Example 1: A person lives in his sister’s home with his sister, his sister’s spouse and child. The monthly household shelter expenses total $1200 ($300 pro rata share). The person pays $100 for utilities, which is less than their pro-rata share. Count 1/3 FBR as S/M.

Example 2: A person lives in his cousin’s home with two other people. Monthly household shelter expenses total $1600 ($400 pro-rata share). The person pays $250 specifically earmarked for shelter costs. Count 1/3 FBR as S/M.

E-8213 Contributing an Earmarked Share of Shelter Only

Revision 26-1; Effective March 1, 2026

Count the Presumed Maximum Value (PMV) as support and maintenance if a person contributes an earmarked pro rata share of shelter. If the person is income-eligible, no further development is needed. Give the person an opportunity to rebut and show that actual value is less if counting PMV results in ineligibility.

Example: Emily Fairchild lives with her brother and his family of three. Ms. Fairchild contributes her pro rata share of shelter expenses. Count PMV as S/M. If she is income-eligible, no further development is needed. If counting PMV results in ineligibility, before denial, give Mrs. Fairchild an opportunity to rebut and show that the actual value is less. Monthly household shelter expenses total $1400 ($350 pro rata share). Ms. Fairchild contributes $100 per month for electricity and $100 per month for rent. The actual value is $150 ($350 client's total pro-rata share - $200 client's total contribution = $150.00).

Note: If a person purchases their food separately from other household members, calculate support and maintenance using the PMV rule. Count 1/3 FBR + $20. If the person is income-eligible, no further development is needed. If counting 1/3 FBR + $20 results in ineligibility, the person must be offered an opportunity to rebut and show that the actual value is less.

E-8214 Reserved for Future Use

Revision 26-1; Effective March 1, 2026

E-8220 Ownership or Rental Liability

Revision 09-4; Effective December 1, 2009

A person has an ownership interest or rental liability, and someone else is directly paying all or part of the person's pro-rata share of household expenses. Cash is not given to the person.

If the person is the householder (has ownership interest or rental liability), count 1/3 FBR + $20. If the person is income-eligible, no further development is needed. If counting 1/3 FBR + $20 results in ineligibility, prior to denial the person must be given an opportunity to rebut and show that the actual value of the S/M is less.

Note: The one-third reduction rule never applies if the person is the householder.

E-8221 Receipt of Support and Maintenance (S/M) from Inside the Household

Revision 26-1; Effective March 1, 2026

A person living in their own household may be receive in-kind support and maintenance (ISM) from other household members.

Develop S/M only if PMV, in combination with other countable income, would cause ineligibility.

Do not count S/M if:

• the person is the householder; 
• others live with the person; and
• the person pays their pro rata share of shelter expenses

Example: David Ramirez lives in his own home. His daughter and her two children live with him. Household shelter expenses are as follows: 

• annual property taxes of $2,400 ($200 monthly); and 
• monthly utility costs of $310. 

Pro rata share of shelter costs is $127.50. The breakdown is $200 taxes + $310 utilities = $510 total shelter expenses divided by four household members = $127.50 prorata share. Mr. Ramirez’s daughter pays the taxes, and Mr. Ramirez pays the utilities of $310 per month. Since Mr. Ramirez pays more than his pro-rata share of household expenses, there is no S/M.

Count PMV if:

• the person is the householder; 
• others live with them; and 
• the person does not pay their pro-rata share of shelter expenses.

If the person is income-eligible, no further development is needed. If PMV causes ineligibility, offer rebuttal to determine the actual value of shelter received. 

Example:

Vicki Neal lives in her own home. Her adult son lives with her. Ms. Neal and her son purchase their food separately, but she does not pay her pro rata share of shelter expenses. Count PMV as S/M. If Ms. Neal is income-eligible, no further development is required. If this causes ineligibility, offer rebuttal. Ms. Neal pays $35/month for butane. Her son pays the entire electricity bill of $200 per month directly to the vendor. Shelter costs total $235 or $117.50 pro rata share. The actual value is $82.50 or $117.50 pro rata share - $35 client's contribution = $82.50 S/M.

E-8222 Receipt of Support and Maintenance (S/M) from Outside the Household

Revision 18-4; Effective December 1, 2018

If the person is the householder (has ownership interest or rental liability) and someone else outside the household is directly paying all or part of the person's pro-rata share of household expenses, count 1/3 of the Federal Benefit Rate (FBR) + $20.

If counting 1/3 FBR + $20 does not make the person ineligible, no further development of S/M is needed.

If counting 1/3 FBR + $20 results in ineligibility, prior to denial, allow the person the opportunity to rebut and show that the actual value of the S/M is less.

Example: Elizabeth Smith lives alone in a rented apartment. Her rent is $1400 a month. Ms. Smith pays $700 and her daughter, who does not live in the household, pays the other $700 directly to the landlord. Ms. Smith pays all other bills. Current Market Rental Value (CMRV) $1400 -$700 = $700 > 1/3 FBR +$20.  S/M = 1/3 FBR + $20.

Note: The one-third reduction rule never applies if the person is the householder.

E-8222.1 Rental Subsidy - Receipt of Support and Maintenance (S/M) from Outside the Household

Revision 18-4; Effective December 1, 2018

Reference: Appendix XIV, Chart B

Rental subsidy is unearned income that represents S/M from outside the household. Rental subsidy policy applies only when:

• someone in the household has a rental liability;
• the rental property is owned by a parent or child of someone in the household; and
• the One-Third Reduction Rule (1/3 FBR) does not apply.  

If the amount of rent required by the property owner equals or exceeds either the current market rental value (CMRV) or 1/3 FBR + $20, then there is no rental subsidy countable as outside S/M.

If the amount of rent required by the property owner is less than both the CMRV and 1/3 FBR + $20, then the rental subsidy countable as outside S/M is the lessor of the:

• difference between 1/3 FBR + $20 and the amount of rent required; or
• difference between the CMRV and the amount of rent required.

Example: Royce Jones, a disabled adult, lives alone in a home owned by his parents. He pays all his own utilities, but does not pay the CMRV. Mr. Jones pays $50 per month rent. His parents state that the normal rate to rent the house is $250 per month (not including utilities). The difference between the CMRV and the rent value is $200 ($250 - $50). The difference between 1/3 FBR + $20 and the amount of rent required is $126.66 ($176.66 - $50). Because $126.66 is less than $200, $126.66 is countable S/M.

Notes:

• As Rental Subsidy considers only the rental expense, explore potential S/M for remaining household expenses (e.g., utilities or food). 
• Accept owner declaration of CMRV. Contact with a knowledgeable source, such as a realtor, is not required unless the eligibility specialist considers the value questionable.

Related Policy

Receipt of Support and Maintenance (S/M) from Inside and Outside the Household, E-8223

E-8223 Receipt of Support and Maintenance (S/M) from Inside and Outside the Household

Revision 26-1; Effective March 1, 2026

Count PMV if a person receives S/M from both inside and outside the household. 

If the person is income-eligible, no further development is needed. 

If counting PMV results in ineligibility, before denial, give the person an opportunity to rebut and show that the combined value of shelter received from inside and outside the household is less than the presumed maximum. 

Example: Bob Davis lives in his own home. His daughter and her two children live with him. He receives S/M from both inside and outside the household. Count PMV as S/M. If he is income-eligible, no further development is required. If counting PMV results in ineligibility, give Mr. Davis an opportunity to rebut and show that the actual value is less. Monthly household shelter expenses total $600 ($150 pro rata share). His daughter pays $175 for electricity costs, and he pays $25 for water. His son pays $400 toward property taxes and insurance. In this situation, the actual value of S/M is $125 or $50 pro rata share for utilities - $25 client's contribution = $25 S/M from inside the household + $100 S/M from outside the household = $125. Count the maximum S/M of PMV if this is less than the actual value.

E-8311 Companion Case Not Contributing Pro-Rata Share

Revision 26-1; Effective March 1, 2026

If a person and their ineligible spouse live together and do not contribute their pro rata share of household expenses, count 1/6 of the Couple FBR or 1/3 Couple FBR divided by two as S/M for the person. Do not count S/M for the ineligible spouse in the eligibility budget. 

Example: A couple lives in their daughter's home. The daughter's spouse and their three children also live there. Only one member of the couple is applying for the Qualified Medicare Beneficiary (QMB) program. The couple does not contribute toward household expenses. Count 1/6 of the Couple FBR  as S/M for the applicant. Do not count any S/M for the ineligible spouse when deeming. 

Note: If the person and their ineligible spouse live in a SNAP public assistance (PA) household, and the ineligible spouse receives SNAP, then:

• Do not develop ISM, even if the couple does not pay their pro rata share of shelter expenses.
• Do not deem the ineligible spouse’s income.

Related Policy

Special Income Exemptions Used in Deeming, E-7400
Exceptions to Counting Support and Maintenance, E-8140

E-8312 Companion Case Contributing Pro-Rata Share

Revision 26-1; Effective March 1, 2026

If a person and their ineligible spouse contribute their pro rata share of shelter expenses, no support and maintenance applies. If an ineligible spouse’s contribution toward household expenses exceeds their pro rata share of shelter, the excess amount is allocated equally among the eligible spouse and the couple’s children, if any. These household members are referred to as the deeming unit. Only the portion allocated to the eligible spouse is considered in the eligibility budget. Do not count the portion allocated to children, unless they are also applicants. 

Example: A couple live with their son and his spouse. Only one member of the couple is eligible for QMB. The monthly household shelter costs are $1000. The pro rata share is $250 per person x2 = $500 couple’s pro rata share. The couple contributes $500 toward shelter. Because the couple contributes their full pro rata share of shelter, no ISM is developed, and no S/M is counted.

E-8313 Couple Case Not Contributing Pro-Rata Share

Revision 09-4; Effective December 1, 2009

If neither spouse in a couple case contributes a pro-rata share of household expenses, count 1/3 Couple FBR.

E-8314 Couple Case Contributing Pro-Rata Share

Revision 26-1; Effective March 1, 2026

If both spouses in a couple case contribute their prorata share of shelter expenses, no support and maintenance applies. 

E-8320 Ownership or Rental Liability

Revision 09-4; Effective December 1, 2009

E-8321 Couple Case Not Contributing Pro-Rata Share

Revision 15-4; Effective December 1, 2015

If the person and spouse do not pay their pro-rata share of household expenses, count 1/3 Couple FBR + $20. If the couple is income-eligible, no further development is needed. If counting 1/3 Couple FBR + $20 results in ineligibility, prior to denial, the couple must be given an opportunity to rebut and show that the actual value is less.

Example: A couple lives in their own home. Their adult son lives with them. The couple does not contribute their pro-rata share of household expenses. Count 1/3 Couple FBR + $20 as S/M. If the couple is income-eligible, no further development is needed. If counting 1/3 Couple FBR + $20 results in ineligibility, prior to denial, the couple must be given an opportunity to rebut and show that the actual value is less. The monthly household expenses total $750 ($250 pro-rata share for one person x 2 people = $500 pro-rata share for the couple). The son pays the shelter costs of $350 per month. The couple buys all of the food, paying $400 ($200 each) per month. The actual value is $100 ($500 couple's pro-rata share – $400 couple's contribution = $100).

E-8322 Companion Case Not Contributing Pro-Rata Share In Own Household

Revision 26-1; Effective March 1, 2026

Count 1/6 of the Couple FBR + $10 as S/M for the person if they and their ineligible spouse live in their own household and do not contribute their pro-rata share of shelter expenses. Do not count S/M received by the ineligible spouse in the eligibility determination when deeming. If the person is income-eligible, no further development is needed. If counting 1/6 Couple FBR + $10 results in ineligibility, give the person an opportunity to rebut and show that the actual value is less.

Example: A couple lives in their own home. Only one member of the couple is applying for QMB. Two of their adult children live with them. The couple does not pay their prorata share of household expenses. Count 1/6 Couple FBR + $10 as S/M for the applicant. If the applicant is income-eligible, no further development is required. If counting 1/6 Couple FBR + $10 results in ineligibility, give the applicant an opportunity to rebut and show that the actual value is less. 

The monthly household shelter costs total $1,200 or $300 pro-rata share for one person x two people = $600 couple's prorata share. The couple contributes $300, and their children pay the remaining $300. The actual value of S/M for the applicant is $150 or $600 couple's pro rata share – $300 couple's contribution = $300 actual value for both spouses divided by 2 = $150 actual value to the applicant. Count the maximum S/M of 1/6 Couple FBR + $10 if this is less than the actual value.

Revision 26-1; Effective March 1, 2026

Rent-free shelter occurs when no household member has ownership interest or rental liability. A person outside the household provides the dwelling without requiring rent.

This is subject to the Presumed Maximum Value (PMV) Rule. Count 1/3 of the FBR +$20 as S/M if the household contributes nothing toward shelter. If they are income-eligible, no further development is required. If counting PMV results in ineligibility, give the person an opportunity to rebut and show that the actual value is less.

Actual value is based on the current market rental value (CMRV). The actual value may be reduced by voluntary payments made directly to the provider for:

• mortgage;
• real property taxes; or 
• rent, including sublease situations.

Only payments made directly to vendors may reduce the actual value of S/M.

Example: Margie Ballard lives in a house owned by her son. She purchases her food and pays for all the utilities. Her son allows her to live in the home without paying rent. The son reports the CMRV without utilities is $250. Count 1/3 FBR + $20 as S/M. If she is income-eligible, no further development is required. If counting 1/3 FBR + $20 results in ineligibility, give Ms. Ballard an opportunity to rebut and show that the actual value is less. In this situation, the actual value is the CMRV of $250. Count the maximum S/M of 1/3 FBR + $20 if this is less than the actual value.

Example: Michael Nguyen lives in a house owned by a relative. He pays his own utilities. The relative allows him to live there free of charge, and reports the CMRV, excluding utilities, is $300. Although Mr. Nguyen pays no rent, last month he voluntarily paid his relative’s annual property taxes of $1,000, or $83.33 per month when prorated, directly to the taxing authority. His payment of $83.33 does not equal the CMRV. Count 1/3 FBR + $20 as S/M. If he is income-eligible, no further development is needed. If counting 1/3 FBR + $20 results in ineligibility, give Mr. Nguyen an opportunity to rebut and show that the actual value is less. In this situation, the actual value of the S/M is $216.67 or $300 CMRV - $83.33 client's voluntary payment = $216.67. Count the maximum S/M of 1/3 FBR + $20 if this is less than the actual value.

Revision 09-4; Effective December 1, 2009

Receipt of in-kind S/M must be re-evaluated if a person changes his/her permanent living arrangement. Temporary absences from the permanent living arrangement do not affect S/M.

Example: A person lives in her own home. A friend lives with her. The friend pays more than her own pro-rata share of household expenses, so the person receives S/M of 1/3 FBR + $20. On March 8, the person was hospitalized and was subsequently discharged to her son's home on March 25. The person remained in the son's home while convalescing until April 12, when she returned to her own home. Because the person did not change her permanent living arrangement, continue to count 1/3 FBR + $20 as S/M.

E-8610 Excess Contributions Towards Household Expenses

Revision 09-4; Effective December 1, 2009

If an ineligible parent's contribution towards household expenses exceeds that ineligible parent's pro-rata share, then the excess amount is allocated equally as a contribution among the parent's children (eligible and ineligible) and eligible spouse (if any). Persons among whom the ineligible parent's excess contribution is allocated (for example, children and eligible spouse, if any) are referred to as the "deeming unit."

E-8620 Child Living with Parents and Siblings Only

Revision 11-4; Effective December 1, 2011

If an eligible child lives only with his parent(s) and minor children, no S/M is developed for that child.

Example: John Voss, aged 14, is applying for ME-SSI Prior. He lives with his parents and two younger siblings in a home owned by his parents. John does not personally contribute toward household expenses. There is no S/M because John lives with his parents and minor siblings.

E-8630 Child Living in Own Household with Parents and Another Adult

Revision 26-1; Effective March 1, 2026

If an eligible child lives with their parent(s) and another adult in the parent(s)’ household, the child may receive ISM subject to the PMV rule. This applies only if the household is not a public assistance (PA) household and the child does not contribute their pro rata share of shelter expenses.

Reminder: Food is no longer considered ISM. Any ISM received by the parent(s) or ineligible children is not counted in the eligibility determination when deeming. Excess shelter contributions by a parent are divided equally among all members of the deeming unit.

Example 1: One Parent Contributes; One Does Not

A 14-year-old child is applying for ME-SSI Prior. He lives with both parents and two minor siblings in a home owned by the parents. His aunt also lives in the home. The child does not contribute toward household expenses. Count PMV as S/M. If they are income-eligible, no further development is required. If applying the PMV results in ineligibility, give them an opportunity to rebut and show that the actual value is less. The general household expenses total $1,200 or $200 pro rata share. Parent one contributes $500 toward household expenses; Parent two does not contribute. The applicant’s aunt pays $700. The one parent’s excess contribution is $300 or $500 contribution – $200 pro rata share = $300 excess contribution. The $300 is divided equally among the applicant and his two siblings. Thus, $300 divided by 3 = $100 applicant’s contribution. The actual value of S/M received is $100 or $200 pro rata share – $100 applicant’s contribution = $100 actual value of S/M, which is less than the PMV.

Example 2: Both Parents Contribute

The situation is the same as above, except that both parents contribute toward shelter expenses. Parent one pays $200 and Parent two pays $300. Count PMV as S/M. If the applicant is income-eligible, no further development is required. If counting 1/3 FBR + $20 results in ineligibility, give the applicant an opportunity to rebut and show that the actual value is less. The one parent does not have an excess contribution or $200 contribution – $200 pro-rata share = $0 excess contribution. The other parent’s excess contribution is $100 or $300 contribution – $200 pro rata share = $100 excess contribution. The $100 is divided equally as a contribution among the parents' children in the household. Thus, the applicant’s contribution is $33.33 or $100 excess contribution divided by three children = $33.33. The actual value of S/M received by the applicant is $166.67 or $200 pro-rata share – $33.33 applicant’s contribution = $166.67, which is less than the PMV.

Example 3: Both Parents Contribute Equally

This is the same situation, except that each parent contributes $275 or $550 total, and the aunt contributes $650. Count PMV as S/M. If the applicant is income-eligible, no further development is required. If counting PMV results in ineligibility, give the applicant an opportunity to rebut and show that the actual value is less. The excess contribution for each of the applicant’s parents is $75, which is $275 parent's contribution – $200 pro-rata share = $75 excess contribution. The total excess contribution for both parents is $150 or $75 x 2 = $150. The $150 is divided equally as a contribution among all three children. Thus, the applicant’s contribution is $50 which is $150 divided by 3 = $50. The actual value of S/M received by the applicant is $150 or $200 pro rata share – $50 applicant’s contribution = $150, which is less than PMV.

Example 4: One Parent Is an SSI Recipient

This is the same situation, except that one parent is an SSI recipient and contributes nothing. The other parent contributes $500. Because one parent receives SSI, this is a public assistance (PA) household. Do not develop in-kind support and maintenance. Do not count support and maintenance. Do not deem the income of the parent receiving SSI.  

Related Policy

When Deeming Procedures Are Not Used, E-7200

E-8640 Child Living with Parents in Household of Another Person

Revision 26-1; Effective March 1, 2026

When an eligible child lives with their parent(s) in someone else's household, and the child does not contribute their pro-rata share of household expenses, count 1/3 FBR as in-kind support and maintenance (ISM). ISM received by the parent(s) or ineligible children is not counted. If a parent contributes more than their own share of shelter costs, the excess is divided equally among the parent’s children and eligible spouse, if any. This is referred to as the deeming unit. 

Example: Rachel Brown is 14 and applying for ME-SSI Prior. She lives with her mother and aunt in the aunt's household. General household expenses total $420or ($140 pro rata share. Rachel has no income, but her mother contributes $200 toward household expenses. The mother's excess contribution is $60 which is $140 pro rata share - $200 mother's contribution = - $60 mother's excess contribution. The full $60 excess is attributed to Rachel because she is the only person in the deeming unit. Since Rachel's contribution of $60 does not equal her pro rata share ($140) of household expenses, count PMV as S/M. No rebuttal is offered.

If an eligible child lives with their parent(s) in someone else's household and the child contributes their pro rata share of shelter costs count PMV as S/M. If the child is income-eligible, no further development is required. If counting PMV results in ineligibility, give the person an opportunity to rebut and show that the actual value is less. Any excess contribution by a parent is divided equally as a contribution among the deeming unit.

Example: Sonia Barrett, is 14 and applying for ME-SSI Prior. She lives with her parents and her aunt in the aunt's household. Household shelter costs total $500 or $125 pro rata share. Each of Sonia's parents contributes $150 ($300 total) toward shelter costs. Sonia has no income. Count PMV as S/M. If she is income-eligible, no further development is required. If counting PMV results in ineligibility, give the person an opportunity to rebut and show that the actual value is less. The excess contribution for each parent is $25 or $150 parent’s contribution-$125 pro rata share for shelter = $25.The total excess contribution for both parents is $50 or $25 per parent x 2 parents = $50. The $50 is divided equally among all the parents' children in the home. Sonia is the only one. Thus, Sonia's contribution is $50. The actual value of S/M received by Sonia is $75 or $125 pro rata share for shelter -$50 Sonia’s contribution = $75, which is less than PMV.

Revision 26-1; Effective March 1, 2026

Shelter is not counted in the eligibility or co-payment budgets for the month of entry into a long-term care facility.

Revision 26-1; Effective March 1, 2026

Refer to Appendix XVI, Documentation and Verification Guide.