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261 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility Shelter Costs/Deductions Allowable Shelter Expenses Shelter or housing expenses include billed amounts for continuing charges for rent, mortgage (including a second mortgage) or other continuing payments leading to home ownership, including interest on such payments. These expenses must occur where the filing group is currently residing. See below for costs incurred for an unoccupied home. The applicant’s monthly mortgage bill is allowed as a housing expense even when it is not being paid because it is in foreclosure or is a reverse mortgage, if the applicant is still incurring the cost/debt. Payments on a home equity loan or line of credit are also allowed if the home is listed as collateral on the loan, and the financial institution is listed as a lien holder on the home. Other allowable housing expenses include: • Property taxes (even when they are deferred) • State and local assessments • Mortgage insurance premium (MIP) • Insurance on the structure of the home • Condominium and association fees charged to owners and renters to cover common area expenses • Itemized housing expenses paid at the time of closing, such as insurance and property taxes • Expenses that are not reimbursed by private or public sources for repairing a home damaged or destroyed by a disaster (such as fire or flood) • For homeless groups living in their vehicle, payments on the vehicle and the portion of insurance payments that cover vehicle damage (comprehensive and collision only). Unoccupied home. In addition to shelter costs incurred where the SNAP group resides, allow a deduction for a home the group is not occupying, if all of the following are met: • The home is unoccupied because of illness, employment or training away from home, natural disaster or casualty loss; • The SNAP group intends to return to the home; • Any current occupants are not claiming shelter costs for SNAP; and • The home is not leased or rented. For an unoccupied home, allow only the actual verified utility costs as a deduction. Do this by adding the actual utility costs to the housing cost. Do not give the FUA or LUA for utilities on an unoccupied home. Unallowable housing expenses include: • Expenses to insure furniture or personal belongings • Renters’ insurance, even if it is required by the landlord in order to live in the dwelling • Payments on delinquent property taxes and their interest • Closing expenses.