Rental Agreements and SSI - You can charge less than you think!

Supplemental Security Income (SSI) is a cash benefit for people with disabilities that will pay up to $943.00 per month.  In order to receive the maximum benefit , an individual cannot be living “rent-free.”  For example, SSI applicants living at home with their parents will not receive the full benefit unless they are paying rent to their parents.

People often wonder—how much should I charge for rent?  In the past, the Social Security Administration required that individuals pay fair market value.  In other words, to arrive at a rental amount, families would calculate the household expenses and divide the total amongst the number of adults living in the home.  If the Social Security Administration determined that the rental amount was less than fair market value, then it would reduce the individual’s monthly benefit by one-third.  So, instead of receiving $943.00 per month, the individual would receive $609.00 (1/3 of $943.00, plus a $20.00 disregard).

BUT GOOD NEWS!  The Social Security Administration recently updated its regulations to state that as of September 30, 2024, for individuals in all 50 states, the rental amount does not need to be fair market rent.  Instead, the rental amount must be at least $314.00 (in 2024).  This amount represents one-third of the maximum SSI benefit.

So, how much should you charge for rent to get the maximum SSI benefit in 2024?  The answer is at least $314.00.  You may charge more, but any lesser amount will reduce the individual’s SSI benefit by one-third.

To learn more about the SSI rules, check out our blogs and videos!