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Title 7: SNAP Page 48 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Deductions Revised February 13, 2026 Shelter Expenses Shelter Expenses Legal reference: 7 CFR 273.9(d)(6) Households receive a deduction for monthly shelter costs that are more than 50% of their income after all other deductions. The maximum monthly shelter deduction, including utilities, is $744 for households that do not include an elderly or disabled member. If a household includes an elderly or disabled member, there is no maximum amount. The Automated Benefit Calculation (ABC) system allows the appropriate shelter deduction based on coding entered on the TD02 screen, SNAP TEST field. Enter code “N” if the household includes at least one elderly or disabled member. When code “N” is entered, ABC does not limit the amount of monthly shelter deduction. See 7-I, Income and Deductions of Ineligible Household Members for how to treat shelter costs for households whose only elderly or disabled person is an ineligible member. When a client is living in a residential care facility and the facility can separate out the charges for room cost, allow this cost as a shelter expense. If the facility cannot separate out the room cost, subtract the maximum SNAP allotment from the facility’s total monthly charge for that household. Allow the difference as the household’s monthly shelter cost. If a shelter expense is covered by reimbursement or vendor payment that is excluded as income, do not allow the expense as a shelter deduction. If the reimbursement or vendor payment excluded as income is only for a portion of the shelter expense, allow the portion not covered by the payment as a shelter expense. The following sections discuss allowable shelter deductions related to maintaining the dwelling. This includes information on the homeless standard deduction, available to households in which all members are homeless. (The utility component of shelter costs is discussed under Standard Utility Allowances.)They include:  Tax and insurance costs.  Rent, mortgages, and continuing charges.  Condominium or association fees.  Repair or replacement costs.  Shelter costs for two residences.  Costs of an unoccupied home.  Separate costs for a shared living arrangement.  Homeless standard deduction See 7-I, Self-Employed Households: Deductions for information on shelter deductions for self-employed households.