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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.