The SNAP/food stamp rules allows you to deduct shelter expenses that exceed half of your net income. This is called the "shelter deduction." 106 C.M.R. § 364.400(G). For example, if your allowable shelter expenses are $700 per month, but your net income after other deductions is $1,500 per month, you will get no shelter deduction. That's because half of your net income ($750) is more than your shelter expenses of $700.
Shelter costs may be self-declared by the household unless questionable. This includes shelter information on the application form, recertification form or a signed and dated statement by the household. You can use this form. See What proofs (verifications) do I need?.
The SNAP/food stamp shelter deduction is complicated because Congress wanted to target SNAP/food stamp benefits towards households that have the highest shelter costs in relation to their incomes and therefore have the hardest time paying for food. After Section 8 and public housing, it is the biggest source of federal assistance to low-income households based on their housing needs
Two types of shelter deduction:
- Regular shelter deduction: The shelter deduction is capped at $459 per month for all families, pregnant women, and individuals without disabilities.
- Elder/disabled shelter deduction: If the household includes any person who is elderly (age 60+) or a person with disabilities, there is no limit or cap on the shelter deduction.
Allowable shelter expenses
- monthly rent paid (or owed) if you are a tenant, or the amount you are responsible for if you sublet or share an apartment;
- mortgage, including payments on the principal, interest, legal fees, home improvement loans (even if you are behind in your payments);
- real estate taxes and homeowner insurance (even if you have no mortgage), municipal water and sewer fees;
- the cost of any repairs to your property (a new boiler, new roof, replacement of windows, etc.);
- trailer payments and parking fees; and/or
- shelter expenses for a home not occupied by you if you are planning to return to it and are not otherwise renting it, and charges for repair of a home damaged by natural disaster, provided you will not be reimbursed for these repairs, 106 C.M.R. § 364.400(G)(1);
plus
- the appropriate standard utility allowance (SUA) for your household. See What is the standard utility allowance (SUA) and what is H-EAT? Actual utility costs and heating costs are not allowed as they are covered under the SUA.
How DTA calculates the shelter deduction
There are four steps to calculate your shelter deduction:
- Step 1: Calculate your preliminary net income, which is your gross monthly income after subtracting your earned income deduction, the standard deduction, your dependent care costs, child support payments, and the medical cost deduction if you are a household with an elderly or disabled member.
- Step 2: Calculate your allowable shelter deduction by adding your non-utility shelter costs (rent, mortgage, etc.) to your standard utility allowance (SUA).
- Step 3: Divide your preliminary net income in half.
- Step 4: Subtract the result in Step 3 (half of your preliminary net income) from the result in Step 2 (your shelter costs). The result is your excess shelter cost. If the answer is zero or less, you do not get a shelter deduction. 106 C.M.R. § 364.400(G). If the answer is more than $459, you can deduct only $459 unless the household includes an elderly or disabled person. 106 C.M.R. § 364.500(K).
In other words, allowable Shelter Costs (Step 2) minus half of Preliminary Net Income (Step 3) equals Shelter Deduction (up to the cap if applicable).
Example
Carl Chase earns $1,500 per month. He lives with his wife Cindy and their child, for a household of 3 persons. He pays $100 per month in child support for a child who does not live with him. The family pays $500 per month in rent, and also pay their own heat and utilities. There is no other income in the household and no other deductible expenses.
$1,500 Gross earned income of Carl Chase
(including child support paid to a child outside the HH)-300 20% earnings deduction from gross -141 Standard deduction for HH of 3 -100 Child support deduction $959 Preliminary net income Shelter deduction calculation
$500 Rent +611 SUA $1,111 Shelter expenses -479 One-half prelim. net income $631 Shelter expenses -459 Maximum shelter deduction $500 NET INCOME for the Chases
Note
The SNAP/food stamp shelter deduction is complicated because Congress wanted to target SNAP/food stamp benefits towards households that have the highest shelter costs in relation to their incomes and therefore have the hardest time paying for food. After Section 8 and public housing, it is the biggest source of federal assistance to low-income households based on their housing needs.
Additional Policy Guidance on Shelter Costs
Additional Policy Guidance on Shelter Costs
- Mortgage or rent payments are still included as shelter costs even if household is in arrear and cannot make payments, but household cannot claim arrearage payment for back rent/mortgage if previously deducted while getting SNAP/food stamps. DTA Transitions (Feb. 2010)
- Shelter expenses may be self-declared unless questionable DTA Field Operations Memo 2010-29 (June 16, 2010)
- Mortgage payments made when not living in the home are allowed as a deduction if household is temporarily absent for employment, training, illness, or an emergency— as long as no one else is renting dwelling and household plans to return. DTA Transitions (Apr. 2007)
- Shelter costs paid by others (e.g., relatives, friends) are not deductible shelter expenses. DTA Transitions (May 2004)
- Condominium fees are allowable shelter costs. DTA Transitions (Jan. 2000)
- Rent or utilities paid in advance may be deducted in the month when they would have been due. USDA Food Stamp Program Regional 04-05 (Northeast Region)
- Only amount of mortgage billed is allowed, even if household pays more than monthly mortgage. DTA Transitions (Oct. 2000)
Produced by Patricia Baker, Laura Gallant, Deborah Harris, Rochelle Hahn Massachusetts Law Reform Institute Last updated January 2011
