How does rental property affect eligibility?
Short answer: Rental property is usually a countable asset, and the net rent is income. Some states exclude income-producing property that meets certain tests.
Figures change periodically. Double-check current amounts before relying on them.
Rental property raises two questions:
1. Does the property count as an asset? Generally yes, at its equity value (market value minus mortgages). But under SSI-based rules, some property used in a trade or business, or that produces income, can be excluded if it meets certain tests, such as producing a reasonable return. States differ on how they apply this to rental real estate. If the property counts and pushes the person over the limit, it may need to be sold (sale at fair value is not a penalty) or otherwise addressed.
2. How is the rent treated? Net rental income (rent minus allowable expenses such as taxes, insurance, repairs and interest) is income. It counts toward income limits and the patient liability.
A home rented out while the owner is in a nursing home can raise both questions: rent is income, and whether the home remains exempt depends on intent to return and state rules.
Keep leases, rent records and expense receipts.
Getting help
Every situation is different, and small facts can change the answer. If this question affects a real decision, especially with a spouse at home, a home, gifts or a trust, a Certified Medicaid Planner can apply your state’s rules to your situation. As a rough guide, published fees for help with an application range from about $500 to $6,000, and hourly help from about $150 to $600.
Related
Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.