SSA logo: link to Social Security Online home2143. One-Third Reduction Rule

2143.1 How much of the reduction amount applies under the one-third reduction rule?

The value of the one-third reduction (see §2142) applies in full or not at all. If the value of the one-third reduction applies, no other in-kind support and maintenance you receive is considered.

2143.2 What is a household under the one-third reduction rule?

A household is your personal place of residence. A commercial establishment, such as a hotel or boarding house, is not a household although one or more households can exist within these establishments. An institution is not a household, and a household cannot exist within an institution.

2143.3 What is another person's household under the one-third reduction rule?

You live in another person's household if the person who provides the support and maintenance lives in the same household and is not:

  1. A minor child; or

  2. An ineligible person whose income can be deemed to you (see §2167).

You are not living in another person's household when:

  1. You or your living-with spouse (or any person whose income can be deemed to you) have an ownership or life estate interest in the home;

  2. You or your living-with spouse (or any person whose income can be deemed to you) are liable to the landlord for payment of any part of the rental charges;

  3. You have been placed in the household under a program of protective care such as foster care or adult care;

  4. You pay at least a pro rata share (see 2143.5 below) of average household operating expenses;

  5. All members of the household receive public income-maintenance payments; or

  6. None of the food is provided by the household. You buy or eat all of your meals elsewhere.

2143.4 What are average household operating expenses under the one-third reduction rule?

Household operating expenses are the household's total monthly expenditures for food, rent, mortgage, property taxes, heating fuel, gas, electricity, water, sewerage and garbage collection services. Generally, household operating expenses are averaged over a 12-month period.

2143.5 What is pro rata share under the one-third reduction rule?

A pro rata share of average household operating expenses is the average monthly operating expenses divided by the number of people in the household. The ages of the people in the household do not matter.

Last Revised: Jul. 17, 2007