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Title 8: Medicaid Page 125 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Specific Non-MAGI-Related Resources Revised July 10, 2026 Property in a Homestead for People Requesting… Property in a Homestead for People Requesting Long-Term Care 441 IAC 75 (Rules in Process) A person is not eligible for payment of nursing facility services or other long-term care services, if the person has substantial equity interest in their homestead. This limit does not apply:  If the spouse, or child who is under age 21, or the person’s child who is blind or disabled, as defined by Social Security, resides in the home; or  To people approved based on an application or request for payment of long-term care services filed before January 1, 2006.

 Use the following chart to determine the correct maximum equity amount based on the date of application.

Application filed on or after: January 1, 2014 January 1, 2015 January 1, 2017 January 1, 2018 January 1, 2019 January 1, 2020 January 1, 2021 January 1, 2022 January 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 Equity interest cannot exceed $543,000 $552,000 $560,000 $572,000 $585,000 $595,000 $603,000 $636,000 $688,000 $713,000 $730,000 $752,000 Property Earning Six Percent of Equity 20 CFR 416.1222 Exclude real property as a resource if its equity value does not exceed $6,000 and the net annual return earned on the property is at least 6% of the equity value. Equity is the current market value of the property minus any legal debt on the property. Market value is the amount an item can be sold for on the open market.

To determine if the property is earning 6% of equity, multiply the net monthly income by 12 months. This amount is the net annual return earned on the property. Then multiply the equity value by 6%. Compare the net annual return amount to the 6% of equity amount.