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SNAP CERTIFICATION MANUAL – SECTION 4000 3B4400 Excluded Resources

Property essential to the self-employment of a household member engaged in a farm operation may be excluded as a resource for one year from the date the farm operation is terminated. The exclusion extends to vehicles used in the farming operation SNAP 4430 as well as land and machinery used in the operation. 5. Installment contracts payable to the household. See SNAP 4570 for instructions on excluding installment contracts when the purchaser has defaulted on the agreement.

4441 Determining if Income is Consistent with Fair Market Value SNAP Manual 07/01/01 When a county office worker must determine if property is producing income consistent with its fair market value, the property’s fair market value will be based on the prevailing rate of return in the area where the property is located or used. EXAMPLE: A house rented for $200 a month is considered to be producing income consistent with fair market value if similar houses in the same area rent for about the same amount. When the worker cannot determine whether property is producing income at the prevailing rate of return based upon information furnished by the household, a knowledgeable source may be contacted. A knowledgeable source should, by virtue of his professional experience, be able to determine if the property is producing income consistent with fair market value. (For real property located in Arkansas, the assessed value times 5 will be used as the fair market value. See SNAP 4712 for additional information.) Local realtors, local FHA or Small Business Administration Offices or the tax assessor should be knowledgeable of the value of real property located outside Arkansas. Local car dealers should know the value of vehicles. The knowledgeable source will be provided with the appropriate information and asked to determine if the property is producing income at the prevailing rate of return. Households that disagree with the assigned fair market value or prevailing rate of return may provide verification of these items.  NOTE: Property excluded as a resource because it is essential to employment does not have to produce income consistent with fair market value. For example, land used by a farmer does not have to produce any countable income to be excluded. 15B4441 Determining if Income is Consistent with Fair Market Value