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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |72 Effective Month: July 2025 • Rental deposits are not counted as income to the landlord, while subject to return to the tenant. However, rental deposits used to pay rental expenses do become income to the landlord at point of use. • In determining net rental income, do not consider rents received or expenses paid in months prior to Medicaid eligibility. • In determining net rental income, do consider rents received or expenses paid in a month in which the case is ineligible as if the case had been in an eligible status (interim months of ineligibility). • For multiple family residences: o If the units in the building are of approximately equal size, prorate allowable expenses based on the number of units designated for rent compared to the total number of units; o If the units are not approximately equal size, prorate allowable expenses based on the number of rooms in the rental units compared with the total number of occupied or unoccupied rooms in the building. o Any expenses strictly related to a particular rental unit are deducted in total from rent for that unit and not prorated. • For rooms in a single-family residence: o Prorate allowable expenses based on the number of rooms designated for rent compared to the number of rooms in the house, excluding bathrooms and counting basements or attics only if they have been converted to living spaces, e.g. recreation rooms). o Any expenses strictly related to a particular rental room are deducted in total from rent for that room and not prorated. • For land, prorate based on the percentage of total acres for rent. • For joint ownership, apportion the income equally among the owners unless a distribution other than equal apportioning is verified. Apportioning is not necessary in cases where the income is combined for the couple who jointly own rental property.