Supplemental Security Income: What is In-Kind Support and Maintenance

What Is In-Kind Support and Maintenance (ISM)?

In-kind support and maintenance is when someone else pays for your shelter expenses or provides you with housing at low or no cost. “Shelter expenses” includes rent or mortgage, property taxes, heat, gas, electricity, water, sewer, garbage collection, and property insurance. The Social Security Administration (SSA) considers ISM in determining whether an individual is eligible for Supplemental Security Income (SSI) and the amount of the benefit.

If someone else pays your rent and your electricity bill, you have received ISM. If someone allows you to live with them and does not charge you rent, that is also ISM. The key characteristic of ISM is that someone is paying for your shelter expenses or providing shelter on your behalf, not simply giving you cash or a check. If that was the case, the funds provided to you would be considered regular income rather than ISM.

How Does ISM Affect Those Who Receive SSI benefits?

If you are a recipient of SSI benefits, ISM could reduce your benefit payment. Be sure to report any ISM because if it is not reported and results in overpayment of SSI benefits, the SSA may seek reimbursement.

The impact of ISM on benefits depends on your living arrangements. If you live in someone else’s home without paying rent and other household members pay for or provide all your meals, then the one-third reduction rule applies. Otherwise, the presumed maximum value rule applies.

The One-Third Reduction Rule. The total SSI benefit amount is reduced by one-third. For example, if you were otherwise eligible to receive SSI benefits of $943 per month, your benefits would be reduced to $628.67 per month (943 ÷ 3 = $314.33; $943 - $314.33 = $628.67).

The Presumed Maximum Value (PMV) Rule. SSA presumes that the value of the ISM is not more than one-third of the federal benefit rate plus $20 ($334.33 in 2024). However, if you can show that the actual value of ISM you receive is less than the PMV, then that actual value will be used in calculating your countable income.

Paying Rent

One way to avoid a reduction in benefits due to ISM is to pay rent. If the rental rate is at least equal to the PMV ($334.33 in 2024), the SSI payment will not be reduced. If the rental rate is less than the PMV, the difference between the rental payment and the PMV is counted as ISM.

Public Assistance Household

If you live in a public assistance household, you are not considered to be receiving ISM from any members of the same household. A public assistance household is one in which at least one other member receives some kind of public income-maintenance payments, such as TANF, SSI, SNAP, or payments from one of the other programs listed in 20 CFR 416.1142(a).

What Should I Do When My Circumstances Change?

You should always report any of the following changes to the SSA within ten days, because the change may affect your ISM:

  • a change in your living arrangements;
  • a change in your income, whether earned or unearned;
  • a change in your eligibility for other public benefits;
  • medical improvements that remove your disability;
  • admission to or discharge from any health facility;
  • you begin to receive help with your shelter expenses; or
  • you are between 18 and 22 years of age and you stop or start attending school.

This article is intended to provide information of a general nature only. It does not provide or replace professional legal advice, and it does not establish an attorney-client relationship with the Maine Elder Law Firm. Please consult an attorney for advice regarding your specific circumstances.

11/6/2024