Renting house from sister for less than open market value... PLEASE HELP...

[lbm744]

What is the name of your state (only U.S. law)? State, Virginia. I will be renting a house from my sister for about $100 a month, and pay all expenses and utilities myself. I only have SSI. I understand if I were to live there free, they would deduct the $265 as in-kind support and maintenance But what if I am paying rent, but at a less than open market-value, will I still lose SSI income?

I can't seem to find out the answer anywhere...PLEASE HELP!!!

 

[adjusterjack]

The answer is in the following publication from the SSA. Scroll down most of the way and read the examples.

https://www.ssa.gov/ssi/text-living-ussi.htm

You should be able to figure your own scenarios from those examples.

You are going to have to figure out the fair rental value of the house. You can do that by checking house rentals on Craigslist and see what comparable houses are renting for.

I'm guessing that the fair rental value is going to be high enough so that the subsidy by your sister will result in a reduction in your benefits by the $245 or $265.

 

[Janke]

https://secure.ssa.gov/apps10/poms.nsf/lnx/0500835120

https://secure.ssa.gov/apps10/poms.nsf/lnx/0500835380


Unless you or someone in your home is related to the landlord as a parent or child, and that you do pay the required rent, then SSI should not charge you with in-kind income for not paying enough rent. If your landlord was your parent or your child, or your parent or your sister's child lived with you, then SSI would want to know Fair Market Value (FMV) and would charge in-kind income if you were not paying the FMV. As long as you are not living rent-free, FMV does not matter in your case because you or someone in your home is NOT related to the landlord as parent or child.

On point references are above.