Rental property is property the client owns and rents to others. This may include separate living quarters in the same building, such as a duplex. For information on rental income from people living with the client, see 0017.15.33.27 (Self-Employment Income From Roomer/Boarder).

Income from rental property may be earned or unearned. See the program provisions for when rental income is earned or unearned. Deduct allowable expenses from both earned and unearned rental income to get gross rental income. Allow earned income disregards only for earned rental income. See 0018.18 (Earned Income Disregards).

Allowable expenses for rental property include:

●	Real estate tax.
●	Insurance.
●	Utilities.
●	Interest.
●	Upkeep and repairs.

When the client lives on the rental property, determine the rental property ratio. Divide the number of rooms or square footage that the client rents out by the total number of rooms or square footage in the building. To determine the portion of an expense that is an allowable deduction, multiply the expense by the ratio.


MFIP, DWP:
Clients may deduct either actual expenses for upkeep and repairs, or use a flat deduction of 2% of the estimated market value on the county tax assessment form. Clients may switch between the flat rate deduction and actual expense method only at recertification. Help clients determine which deduction would be more favorable to them. If clients choose the flat deduction, divide 2% of the estimated market value by 12 to get the monthly deduction amount.

Count income from rental property as earned income when the unit spends an average of at least 43 hours per month maintaining or managing the property. Otherwise, count it as unearned income. Allow earned income disregards only for earned rental income. See 0018.18 (Earned Income Disregards). For information on computing the average number of hours worked per month, see 0017.15.33 (Self-Employment Income).


SNAP:
Count income from rental property as earned income when the unit spends an average of 20 hours or more per week maintaining or managing the property. Otherwise count it as unearned income.

If a unit rents out a room in its home and includes utilities in the rent, the unit may claim the standard utility allowance (SUA) in its SNAP budget or as a deduction from its self-employment earnings. The unit CANNOT claim the SUA in both budgets.


MSA:
For SSI recipients, no county action is required.

For SSI excess income clients:

Count income from rental property as earned income for each month the client spends an average of at least 10 hours per week maintaining or managing the property.

Count income as unearned for each month the client spends less than 10 hours per week maintaining or managing the property.


GA:
Count income from rental property as earned income when the client spends an average of at least 20 hours per week maintaining or managing the property. Otherwise count it as unearned income.

Allow up to $103 per year or 2% of the estimated market value on the county tax assessment form, whichever is greater, for upkeep and repairs.


GRH:
Follow MSA for aged, blind, or disabled clients. Follow GA for all other adults.