SNAP: Income – Rental Income

340:50-7-30 (b)(10) and ITS #9.

Income received from rental property is considered as a form of self-employment income.

Once that has been established, we have to determine whether or not to count it as earned income or unearned income.

  • If the member of the household actively manages the property an average of at least 20 hours per week, the rental income is considered earned income.
  • If the member does not actively manage the property at least 20 hours per week, the worker considers the income as unearned.

In any case, 50 percent of business expense is allowed when the client declares them.

Example 1:

Roger collects rent of $1,200 per month and pays a $900 mortgage payment on the property. He states that he does not actively manage the property at least 20 hours per week.

As business expenses are declared (the mortgage); consider 50 percent of the $1200 as countable income. Code $600 as unearned income. On the Income Tab, Interview Notebook in FACS code amount in the ‘other field’ and select ‘R’ for rental income in the ‘other indicator’ field. A FACS case note should detail income consideration and calculation.

Example 2:

Sheri collects rent of $800 per month from a rental property and pays a $500 mortgage payment on the property. She actively manages the property at least 20 hours per week.

As business expenses are declared (the mortgage); consider 50 percent of the $800 as countable income. Code $400 as self-employment earned income. On the Income Tab, Interview Notebook in FACS code amount in the ‘self-employment’ field. A FACS case note should detail income consideration and calculation.

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