Are Homes OK? SSI, SSDI, Medicaid, Section 8
- Adam Garrett
- Apr 7, 2024
- 18 min read
Updated: Jun 13
In many cases, a home you own won't count against you for a variety of supplemental support. That said, there are some cases when exceptions apply where it will, such as some cases, i.e. if both under 65 & income you produce from the home could disqualify you (i.e. renting out rooms).
Homeownership typically helps, not the other way around.
In most cases, the longer that you've owned a home (or the stronger your equity position, i.e. cash purchasers), the more that having a home will help you if you become disabled or retire. When it comes to assistance for the disabled &/or low-income, cost-reducing options are critical, as it's your income primarily, in some cases your disability, & in some cases non-excluded assets that count against you. That's one of the reasons why the typical homeowner has around 40x the net worth of the typical renter (CNN).
Related:
Rent or Buy? (it really depends, but often people make the wrong answer for their situation, especially if they plan to rent after their parents and grandparents were forever tenants & if they plan to be in one place for a long time)
Impact on Cash vs Mortgage Purchases
The exclusion clauses for home assets plays a role for some in whether or not they buy in cash or use a mortgage. It's one of the incentives of cash purchases over mortgage purchases since it reduces your liquid assets that may exclude you from certain protections and benefits.
In most cases, the longer that you've owned a home (or the stronger your equity position, i.e. cash purchasers), the more that having a home will help you if you become disabled or retire. When it comes to assistance for the disabled &/or low income, cost reducing options are critical, as it's your income primarily, in some cases your disability, & in some cases non-excluded assets that count against you.
Section 8: There are Ownership Options with It
A common myth is that section 8 isn't possible for those who seek to be homeowners. There are many cities and counties where it's possible to use section 8 towards homeownership, and sometimes Section 8 can be stacked with another program where the buyer has very low or no out of pocket costs in aqcuiring a home. A related myth is that you need decent credit, while in reality, some mortgage programs have no consideration of your credit score, but they typically will still have minimum standards unrelated to the score, such as unresolved liens & judgements without a payment plan.
For more details, see:
Social Security Including SSI & SSDI: Home Typically Excluded
SSI Supplemental Security Income: Home Ownership Not Typically Counted Against Someone
Social Security Retirement Income differs from Supplemental Security Income (SSI), while both come from the Social Security Administration. SSI is primarily a need based program, while retirement income is based primarily on earnings.
"Resource limit exceptions
Generally, things that don’t count toward your resource limit include:
Your home and the land it’s on, as long as you live there
1 vehicle per household
Most personal belongings and household goods
Property you can’t use or sell"
While there are a number of other protected items, did you know that your life insurance policy counts against you, except for a mere $1,500?
"Resources are things you own such as:
Cash;
Bank accounts:
Stocks, mutual funds, and U.S. savings bonds;
Land;
Life insurance;
Personal property;
Vehicles..."
SSI: Public Shelter 2/3 Rule Could Negatively Impact SSI
While owning your own home can have a major positive impact on your life while not lowering your SSI, living in a public shelter for 2/3 of the time or more can actually negatively impact your SSI.
Per SSA:
"WHAT IF YOU ARE HOMELESS?
We figure your benefit amount the same as we do for a person who lives in their own house, apartment, or mobile home.
CAN YOU RECEIVE SSI BENEFITS WHILE LIVING IN A PUBLIC SHELTER FOR THE HOMELESS?
Yes. You can receive up to the maximum SSI benefit payable in your State while living in a public shelter for up to 6 months out of any 9 month period.
WHERE WILL YOU GET YOUR SSI BENEFITS IF YOU DON'T HAVE AN ADDRESS?
You don't need an address to get SSI benefits. We will make arrangements to pay you."
Related:
SSI: Other Living Situation Potential Negative Impact to SSI
Per SSA, "We may reduce your SSI benefits because of your living arrangements when you:
Live in another person's house, apartment, or mobile home, and you pay less than your fair share of your food or housing costs.
Live in your own house, apartment, or mobile home, and someone else pays for all or part of your food, rent, mortgage, or other things like electricity and heating fuel.
Are in a hospital or nursing home for the whole month and Medicaid pays for over one-half of the cost of your care.
Are a minor child in a hospital or nursing home for the whole month and private insurance and/or Medicaid together pay over one-half of the cost of your care.
Are in a public or private medical treatment facility and Medicaid is paying for more than half of the cost of your care. If you are in the facility for the whole month, your SSI benefit is limited to $30 (plus any supplementary State payment). We may lower the benefit if you have other income."
SSI: ABLE Accounts Include Option to Save for Housing Expenses
ABLE accounts are tax-free savings accounts for disabled individuals that don't count against their asset limits.
"The designated beneficiary of an ABLE account is the eligible individual who owns the ABLE account. They must be:
receiving Supplemental Security Income (SSI) based on blindness or disability that began before age 26;
in SSI suspense due solely to excess income or resources but otherwise eligible for SSI based on blindness or disability that began before age 26;
receiving disability insurance benefits (DIB), childhood disability benefits (CDB), or widow’s with disabilities or widower’s benefits (DWB) based on blindness or disability that began before age 26; or
the subject of a disability certification."
"A contribution is the deposit of funds into an ABLE account. Any person may contribute to an ABLE account for an eligible beneficiary. Typically, contributions for an ABLE account may not exceed the annual gift tax exemption ($19,000 in 2025). However, if the beneficiary is working, and they or their employer are not making certain retirement plan contributions, the beneficiary may contribute an additional amount equal to the lesser of their annual compensation or the individual Federal Poverty Level for a one-person household in their state of residence for the prior calendar year (which for 2024, would be $14,580 in the continental US, $18,210 in Alaska, and $16,770 in Hawaii). For 2025 the additional amounts are $15,650 in the continental US, $19,550 in Alaska, and $17,990 in Hawaii."
"Qualified disability expenses (QDE) are expenses made for the benefit of the designated beneficiary and related to their disability, including, but not limited to:
Education;
Housing;
Transportation;
Employment training and support;
Assistive technology and related services;
Health;
Prevention and wellness;
Financial management and administrative services;
Legal fees;
Expenses for ABLE account oversight and monitoring;
Funeral and burial; and,
Basic living expenses."
More on Social Security Exclusion of the Home
Per SSA in § 416.1212. Exclusion of the home:
"(a) Defined. A home is any property in which an individual (and spouse, if any) has an ownership interest and which serves as the individual's principal place of residence. This property includes the shelter in which an individual resides, the land on which the shelter is located and related outbuildings.
(b) Home not counted. We do not count a home regardless of its value. However, see §§ 416.1220 through 416.1224 when there is an income-producing property located on the home property that does not qualify under the home exclusion.
(c) If an individual changes principal place of residence. If an individual (and spouse, if any) moves out of his or her home without the intent to return, the home becomes a countable resource because it is no longer the individual's principal place of residence. If an individual leaves his or her home to live in an institution, we still consider the home to be the individual's principal place of residence, irrespective of the individual's intent to return, as long as a spouse or dependent relative of the eligible individual continues to live there. The individual's equity in the former home becomes a countable resource effective with the first day of the month following the month it is no longer his or her principal place of residence."
SSDI Social Security Disability Income: Home Ownership Not Typically Counted Against Someone
While SSI is highly concerned with your income, assets and resources, SSDI is more concerned about whether you have an actual disability limiting your ability to work, as well as your income. With that in mind, you being a homeowner won't disqualify you inherently unless any income you produce from the home disqualifies you as substantial gainful activity.
SS Social Security Retirement Income
Social security retirement income isn't limited based on ownership or assets. Even a billionaire can get it.
Disclaimer
Information changes over time. Adam is not a certified financial planner, certified public accountant, or otherwise. It is best to consult a CPA for tax advice. Information below is up to date as of 4/5/24.
What is Optional State Supplementation (OSS)?
Per the American Council on Aging regarding SSI, OSS, & Medicaid Long-Term Care:
"Some states “supplement” (increase) the amount of monthly income their residents receive via SSI. This is because SSI does not take into account state-specific differences in the cost of living. These state-funded payments are called Optional State Supplementation / Supplements (OSS) or State Supplementary Payments (SSP). OSS / SSP is intended to help SSI recipients pay for basic necessities, such as housing, utilities, food, and clothing...
While most states have OSS, six states do not: Arizona, Arkansas, Mississippi, North Dakota, Tennessee, and West Virginia.
Furthermore, in the states that have OSS, the exact name of the program, the eligibility criteria, the benefit amount, the place of residence one can receive OSS, and how to apply, is all state-specific."
OSS Eligibility Highly Depends on the State
Per the American Council on Aging regarding SSI, OSS, & Medicaid Long-Term Care:
"To be eligible for OSS / SSP, an applicant must be a resident of the state in which they are applying. In many states, the eligibility requirements for OSS are the same as SSI. For instance:
in Wisconsin, persons who are eligible and enrolled in SSI automatically receive the State Supplementary Payment.
In other states, the eligibility criteria, such as the income limit, differs from that of SSI.
As an example, in Iowa, one can still receive OSS if, with the exception of having too much income, they would receive SSI. As long as their income is less than the OSS amount, they are still eligible for OSS."
OSS & SSI vs Medicaid for Residential Settings
Per the American Council on Aging regarding SSI, OSS, & Medicaid Long-Term Care:
"In many states, Medicaid will pay for care services and supports in assisted living residences, adult foster care homes, and other residential settings. However, in no state will Medicaid pay for room and board. SSI and OSS, therefore can complement Medicaid-funded benefits, by helping to cover the cost of room and board. Worth noting is that SSI and OSS can be provided in Medicaid-funded institutions, such as a nursing home, but the payments will be significantly smaller."
OSS: Home Exclusion Highly Depends on the State But Often Significantly Impacts OSS
Per the American Council on Aging regarding SSI, OSS, & Medicaid Long-Term Care:
"Some states limit SSP to persons in specific living situations. For instance, in Washington DC, one must reside in a licensed adult foster care home, and in South Carolina, one must be in a licensed community residential care facility."
In Virginia, receiving SSI doesn't entitle one to receive OSS. In some cases, those ineligible for SSI may be eligible, while in others, those with SSI would be ineligible. Virginia OSS requires that recipients live "in an assisted living facility (domiciliary institution) or in an approved adult foster care home."
The hyperlink to the picture below includes a chart that covers if a state has OSS/SSP, what the benefit amount is, and what the living arrangement requirement is, but many states have missing or very limited information, as in VA's case where the living arrangement above information isn't present & where the benefit amount is blank as well.
Does OSS Home Exclusions Mean that One Shouldn't Own a Home?
In light of the cost of those facilities, the limits of the OSS benefit, the benefits of growing equity, the benefits of appreciation, & the benefit protections that home ownership has, if one is able to live at one's own home that one owns without a heavy amount of costly assistance, one is often better off financially than living in one of these facilities. That said, it highly depends, & factors like social networks and care needs can be major considerations to whether or not it's best for one to own their own home or live in a facility or group home. For instance, someone who would live at home and never get out of the home in a given month and never see anyone at their home other than those delivering packages & food would likely be better off in a residential setting with others due to the negative health impact of isolation. Also, someone who may be able to live on their own now, but who will likely need to transition into a group home in the next few years, would typically not be a good cnadidate for a home purchase, while in a good position as a current homeowner. It's important to do a cost benefit analysis to weigh the pros and cons of each option.
Related:
Medicaid: Home Typically Excluded
Per dss.virginia.gov "REAL PROPERTY EXCLUSIONS FOR THE AGED, BLIND AND DISABLED" document:
Medicaid: Disclaimer
Much of the below is geared toward VA in 2025, & state requirements may vary. The American Council on Aging lists the state-specific Medicaid eligibility requirements.
"The following information is given as a guideline only. For your Medicaid eligibility to be determined, an application must be filed with the local department of social services in your locality."
Full Virginia Document from DSS: Real Property Exclusions for the Aged, Blind, & Disabled
Medicaid: Home Definition & Impact Basics: Home Typically Excluded
States vary in this regard. Below is the information in VA available as of 3/2025:
"Real property is land, including buildings or immovable objects attached permanently to the land. Ownership of real property must be considered when determining your Medicaid eligibility but does not necessarily keep you from receiving Medicaid. The Medicaid eligibility worker will need to see copies of the deeds and tax statements to evaluate the rules that apply in your situation.
You can own your home and be eligible for Medicaid as long as the home is occupied by you or your spouse. This is known as the “home property” exemption. The home is the house and lot used as the principle place of residence and all adjoining property as long as the value of the adjoining land does not exceed $5,000. The lot size is based on the minimum building requirement for the area in which the property is located.
If the adjoining property is used to produce food or goods for home consumption and/or is necessary to the maintenance of your home (such as a driveway, well, or septic system), more than $5,000 of adjoining real property may be excluded."
Full Virginia Document from DSS: Real Property Exclusions for the Aged, Blind, & Disabled
Medicaid: Nursing Homes
States vary in this regard. Below is the information in VA available as of 3/2025:
"If you are in a nursing facility or similar institution, your home is exempt as a resource for six months. After that timeframe, your home may be counted as an available resource. It will not be counted if it is occupied by:
1. your spouse,
2. your minor dependent children (under age 18 or under age 19 if attending school or vocational training), or
3. your parent or adult child who is disabled according to the Medicaid disability definition. Your parent or adult child must have lived in your home with you for at least one year prior to your institutionalization and must be dependent on you for his shelter needs."
Full Virginia Document from DSS: Real Property Exclusions for the Aged, Blind, & Disabled
Medicaid: When Real Property Other than the Home Doesn't Count Against You
States vary in this regard. Below is the information in VA available as of 3/2025:
"Real property other than the home and lot may NOT be counted as an available resource if:
1. it is used in a trade or business,
2. it is used to produce goods or services essential to your self-support, or
3. a reasonable effort to sell the property is being made."
Full Virginia Document from DSS: Real Property Exclusions for the Aged, Blind, & Disabled
Medicaid: Selling Real Property
States vary in this regard. Below is the information in VA available as of 3/2025:
"Medicaid Fact Sheet #40 (REASONABLE EFFORTS TO SELL REAL PROPERTY) contains information about reasonable efforts to sell real property. You may request a copy of the fact sheet from your local department of social services or download a fact sheet from the Virginia Department of Social
Services website at http://www.dss.virginia.gov/benefit/medical_assistance/index.cgi.
Real Property Exclusion Beneficiaries:
ABD Individuals with Income Less Than or Equal To 80% of the Federal Poverty Level,
Qualified Medicare Beneficiaries (QMB),
Qualified Special Low-Income Medicare Beneficiaries (SLMB),
Qualified Individuals, and
Qualified Working and Disabled Individuals (QDWI)
All property adjoining the home is excluded.
If you have left your home but intend to return, the home and adjoining property are excluded indefinitely. You must state your intent to return to the home in writing.
The former home property and other adjoining property are also excluded if:
1. a spouse or dependent relative continues to live on the property. Dependency may be of any kind, including financial or medical. A relative may be related by blood or marriage.
-or-
2. the sale of the property would cause undue hardship, due to the loss of housing, for a co-owner
Full Virginia Document from DSS: Real Property Exclusions for the Aged, Blind, & Disabled
More details on reasonable but unsuccessful efforts to sell real property in VA
Medicaid Disqualifiers, i.e. Life Insurance in VA
Virginia Medical Aid is limited by resources, with typical resource limits of $2k for a single person or $3k for 2 people.
Included: Per the 12/22 VA Medicaid fact sheet, "Resources are things such as bank accounts (checking, savings, certificates of deposit, Christmas club, etc.), stocks, bonds, the cash value of some life insurance policies, property that does not adjoin your home, etc.
Exclusions: Your home and adjoining property, one automobile, burial plots, home furnishings, property in which you have only a life interest, and personal jewelry are not counted."
(over $1500 cash value life insurance in VA is considered a resource - see page 92),
Medicare: No Negative Impact by Homeownership
Like social security, whether you own a home or not doesn't appear to make a difference regarding your medicare eligibility. One of the top requirements for medicare is having at least 10 years of Medicare tax paying history, and either being old enough or being disabled enough.
In determining that, the below were the questions I answered in order to get results for an older person:
Here are my responses for a younger disabled person who has worked at least 10 years paying medicare taxes:
Mortgages & Programs to Reduce Home Cost
Some programs to reduce home cost are almost like free money to help with the privilege of home ownership, and in some cases, lots of it, with some programs being worth over $100k in some circumstances, even half off homes for some.
There are some mortgages, programs to reduce home cost, & more that may restrict how you can use your home, especially for income producing purposes. Be sure to know those details when considering a purchase or as a homeowner.
Tax Relief for Disabled Veterans
State law varies regarding property tax exemptions for disabled veterans (list).
Per a 2015 report, Virginia is 1 of 11 states that "completely exempt a totally disabled veteran's primary residence from property tax."
Virginia law treats disabled veterans well, including:
$40k military benefits tax exemption for year 2025 & later returns
Certain 100% service-connected permanent & total disabled veterans & their surviving spouses receive tax exemptions on real property that they occupy & up to 1 acre of land (or more in the cases of some cities/counties).
"Qualified disabled veterans and their spouses (are exempted) from local personal property taxes on one motor vehicle (passenger car, pickup, or panel truck) that is owned (not leased) and regularly used by or for the veteran."
Other Local Real Estate Tax Deferrals & Relief
Local tax deferrals & relief (Hampton Roads examples) are often available for real estate. All numbers below are per websites in March 2025.
Real estate tax relief/deferral:
Home real estate tax relief/deferral options sometimes include caps on assessed real estate value excluded, where a portion or all of one's home may be excluded depending on the value of the home &/or the characteristics of the lot. Rather than one's home disqualifying someone for this relief/deferral, it will typically just limit the benefit up to the cap if one's home is too valuable or other characteristics are present (i.e. a high acreage property, such as over 10 acres in Hampton, James City County, York County, or Virginia Beach, or 1 acre in Portsmouth or Newport News). These value exclusions are often based on the city/county-assessed values & may have a graduated structure based on income level. Higher-value cities/counties typically have higher caps, & caps tend to increase over time. Here are some local SE VA home assessment relief/deferral examples as of 3/18/25:
Hampton (? I emailed them)
Isle of Wight County cap is up to $2k tax relieved (equivalent to a $273,973 home for 100 % RE tax relief for households with income up to $32,600 based on the 2025 .73 tax rate, excluding Smithfield where rates are 16 cents higher (so equivalent would be $224,719) as of June 30, 2024 on website in March 2025, w/ 4 exemption levels, including 25% for those with a household income of $48,301-$56,300, equivalent to up to a $898,876 home to reach the full $2k relief potential in Smithfield or $1,095,890 in Isle of Wight County outside of Smithfield)
James City County (Person(s) qualifying shall be exempt from real estate taxes in an amount not to exceed the annual real estate rate multiplied by the first $150,000 of assessed real estate value.)
Newport News (no home value limit)
Norfolk: $310,400
Poquoson (? I emailed them)
Portsmouth (? I emailed them)
Virginia Beach (no home value limit)
York County (cap is primarily based on income level, not house value amount), not exceeding $2950.00 in taxes paid for those at the lowest income level ($24,700 & below for 1 owner, $28,200 & below for 2+ owners) out of 3 eligible levels.
Net worth limits are typically present for real estate tax relief/deferral, but are typically much higher (i.e. $350k in Norfolk, Virginia Beach, & Chesapeake, while lower amounts in James City County ($200k), York County ($220k), Hampton ($200k), Suffolk ($249,100), Portsmouth ($75k-$175k depending on benefit) as of 3/18/25) than those present for SSI & Medicaid.
Income limits also may vary substantially, including exclusions as well as income totals that aren't excluded i.e. the following household income limits:
Isle of Wight County: 4 levels w/ 0-$32,600 at the bottom with 100% RE tax relief up to $2k at the bottom or 25% tax relief up to $2k for those w/ household income of $48,301-$56,300
James City County: $55k
Norfolk Tax Relief/Deferral: 5 levels of income, including a 100% exempt 0-$28,611 level with relief up to an assessed value of $310,400 & deferring taxes above that, & a deferral of 20% of the assessed value up to $310,400 for those with incomes $53,653.01 to $67,000.
Virginia Beach: Senior Citizens & Those with Permanent & Total Disability- tax exemptions up to $78,408 & up to $102,305 for a freeze (an additional $10,000 of one's income may also be excluded if someone with a permanent & total disability is in the home)
Other Local Personal Property Tax Deferrals & Relief
Local tax deferrals & relief (Hampton Roads examples) typically have home exclusions on any asset caps. That said, qualifications for real estate tax exclusions on one's home may vary substantially vs real estate exclusions.
For instance, in Virginia Beach, the limits on assets, real estate acreage, and income are all lower for a vehicle to qualify than they are for a home to qualify.
Vehicle combined (husband and wife) income limits in VB: $29,500 (vs $78,408 household income for RE tax exemption of $102,305 for freeze)
Net worth limit for vehicle exclusion in VB, excluding 1 acre a home sits on & the home: $70,000 (vs $350k excluding 10 acres a home sits on & the home for RE tax exemption)
Should you defer?
Some find it best to avoid it if possible, especially if your dependents or heirs are not in a good position financially & if your liquid asset reserves are low. However, if your liquid asset reserves are high or if your heirs are in a good position financially, and wouldn't have a hardship in the event of your death with a large bill suddenly popping up (though it's not uncommon for the bill to be delayed by a year after death), it is typically better to defer.
About the Author: Adam Garrett - 3rd Generation REALTOR®
Adam is the 3rd generation in a line of award-winning real estate agents serving SE VA. He has served full time at Garrett Realty Partners since May 2014 when he joined the marketing department before transitioning to full-time sales to assist buyers and sellers in February 2015. He believes that an educated buyer or seller makes the best decisions, & is dedicated to helping with that both digitally & on-site physically for buyers & sellers. He's also available for referrals to real estate agents around the globe. In several capacities, his resources & direct offerings for assisting sellers & assisting buyers are either unmatched or are top 1% for the SE VA area, and in some cases, nationwide. Not stopping after closing, he also provides information for tenants, landlords, & homeowners.
Related:
Adam's Buyer Feedback of Homes
Related:
Comments