The mission of SSI is to provide monthly payments to people with disabilities and older adults who have little or no income or resources. The rules about assets and income for SSA can be very confusing. SSA has been working to make applying for and keeping SSI benefits easier for individuals. The new SSA Rent Subsidy Rule is a major step in helping people with SSI keep their full benefits.
There are too many acronyms when dealing with government agencies. The Social Security Administration is no exception. To understand how income and assets are calculated for SSI payments, you need to know these acronyms:
| In-Kind Support and Maintenance (ISM) | values any support at its current market value and applies it as income for the SSI recipient. Shelter includes room, rental payments, mortgage payments, real property taxes, heating fuel, gas, electricity, water, sewerage, and garbage collection services. This means, if someone else is paying for or providing an SSI recipient shelter for free, the recipient is receiving “unearned income”. “Unearned Income” can affect their SSI. |
| Current market rental value (CMRV) | is the amount of money a landlord can charge for a rental property based on current market conditions. |
| Presumed Maximum Value (PMV) | is a limit on the amount of in-kind help an SSI recipient can receive. For an individual, the PMV is not more than one-third of the applicable federal benefit rate (FBR) plus $20. The PMV for 2024 is $334.22. |
Many Individuals with Disabilities Need Monetary Help
It is common for parents or family members to help an adult individual with disabilities pay their monthly bills. The cost of living with a disability is high. To keep SSI benefits, an individual cannot have more than $2000 in assets or income. If they exceed this amount, they can lose their benefits. Clearly, that is not enough to survive on today.
Helping a loved one who has a disability pay their rent is often necessary so that they can have independence and still pay their other bills, especially if they cannot work. In the past, any help to the individual could reduce their monthly benefits by one-third. Last week, this changed with implementing a new rent subsidy rule. The examples below illustrate how the SSA has made it easier to help your loved one with a disability.
Rent Subsidy Rule Prior to September 30, 2024
If your adult child with a disability receiving SSI lived in your home and paid rent less than the current market rental value (CMRV) they could lose up to 1/3 of their monthly SSI benefits.
If anyone else were to rent a room from you and you would charge them $800 per month, then $800 per month is the current market rental value (CMRV). If you charge your adult child with a disability who received SSI $600 per month, then you have provided them $200 of In-Kind Support and Maintenance (ISM). Because of the ISM they received, their monthly benefit payment would be reduced by 1/3 ($314.00). So, by providing them $200 in “rent subsidy”, they lose $314 in benefits.
Old Rule
| Current Market Rental Value | Rent charged | Benefit Rate 2024 |
| $800 | $800 | $943 |
| $800 | $600 | $628.67 |
Rent Subsidy Rule as of Sept. 30, 2024
The new rule will not consider the rent subsidy ISM if it is above the PMV. So, if the rent is above $334.33, they will receive the $943.00 benefit.
New Rule (as of September 30, 2024)
| Current Market Rental Value | Rent charged | Benefit Rate 2024 |
| $800 | $600 | $943 |
| $800 | $400 | $943 |
| $800 | $325 | $628.67 |
