For many people in California, high living costs make surviving alone on Supplemental Security Income (SSI) nearly impossible. Family members or friends commonly provide a place to stay to help. However, certain types of assistance can lead the Social Security Administration (SSA) to reduce your monthly benefits.
The SSA refers to this assistance as In-Kind Support and Maintenance (ISM)*. You must understand how the SSA views this help to protect your full benefit amount.
*As of September 2024, the SSA no longer counts food as ISM.
What is in-kind support and maintenance?
The SSA counts both the cash you earn, and “non-cash” help that covers your shelter needs. Specifically, the SSA identifies who pays for your housing.
If another person pays your rent directly to a landlord or provides a rent-free room, the SSA classifies this as unearned income. Because the government designed SSI as a needs-based program to provide for these necessities, the SSA may decrease your benefits if you already receive shelter support from another source. However, the SSA does not reduce benefits if a friend or family member provides you with groceries or meals.
The one-third reduction rule
The SSA often applies the Value of the One-Third Reduction (VTR) rule if you receive shelter from a person you live with without paying your pro rata share. Under this rule, the SSA automatically reduces your monthly SSI payment by one-third of the federal benefit rate.
If your shelter support does not meet VTR criteria, the SSA may use a different calculation called the Presumed Maximum Value (PMV). While the formulas differ, both typically result in a smaller benefit payment.
How to maintain full benefits
You do not automatically lose a third of your benefits by living with family. To receive the maximum SSI amount, you generally must demonstrate that you pay your “fair share” of household operating expenses, including your portion of rent and utilities.
If you cannot afford your fair share immediately, you and your family may utilize a “Rental Loan Agreement.” This formal, written agreement establishes your obligation to repay the value of your room and board once the SSA approves your benefits.
