The Social Security Administration (SSA) has expanded the rental subsidy exception for Supplemental Security Income (SSI) to all 50 states, a policy previously available in just seven states—Connecticut, Illinois, Indiana, New York, Texas, Vermont, and Wisconsin.
This change is expected to impact about 41,000 Americans, with an average monthly benefits increase of $132. Under the new rule, SSI applicants and recipients who pay a specified amount for rent will no longer have their rental assistance factored into In-Kind Support and Maintenance (ISM) calculations.
Additional Benefits for SSI Applicants
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Along with increased payments, the expanded rental subsidy will allow more people to qualify for SSI. Previously denied applicants who were over the income limit may now be eligible. If you were turned down for SSI benefits in the past, now is the time to reapply under these new guidelines.
The SSA’s Monthly Statistical Snapshot for August 2024, set to be released in October, will reflect these changes, giving recipients a chance to compare their average payments, currently at $698, with the increases resulting from this adjustment.
Changes to ISM Calculations and Their Impact
Starting September 30, 2024, the SSA will exclude food from ISM calculations, potentially increasing benefits for over 90,000 recipients. The average increase is expected to be around $131. These changes come at a crucial time as many face inflation and rising living costs, offering much-needed financial relief.
The SSA has also broadened the definition of public assistance households, which will benefit individuals receiving Supplemental Nutrition Assistance Program (SNAP) benefits. This adjustment ensures that even households where not everyone receives public assistance may still see positive impacts on their SSI benefits.
New Rent Subsidy Exception Eligibility
Effective September 30, 2024, the updated policy defines a “business arrangement” that exempts applicants or recipients from ISM if their monthly rent meets or exceeds the Presumed Maximum Value (PMV).
If the rent is below the PMV, ISM will be calculated as the difference between the rent and the lower of the PMV or the Current Market Rental Value (CMRV). There are also exclusions that may reduce this ISM charge.
This expanded policy simplifies SSI rules, increases benefit amounts for some recipients, and promotes fairness in rental assistance across the U.S., creating a more uniform system for low-income individuals in need of support.