Page 2

Aged, Blind and Disabled Manual Policy Manual Number: 110.032 Section: Financial Eligibility Requirements Chapter: ABD In-Kind Support and Maintenance

January 5, 2026 Division of TennCare 2

a. VTR Rule The VTR rule is used to determine the value of ISM when an individual or an eligible couple:

i. Lives for a full calendar month in another person’s household; and ii. Receives food and shelter from the person whose household the individual or couple is living in.

The VTR is equal to one-third of the SSI Federal Benefit Rate (SSI-FBR) for an individual or a couple. Effective 01/01/2026, the VTR for an individual is $331.33 and for a couple $497. The VTR is counted in full or does not count at all. When the VTR applies in a given month, no other ISM is countable.

An individual is not subject to the VTR if his average monthly contribution toward household operating expenses equals or exceeds the pro rata share or is within $5 of the pro rata share. The pro rata share is determined by dividing the average monthly amount in cash the household pays for shelter by the number of individuals living in the household.

Example: Steven lives with his brother, Bill, Bill’s wife, and son in Bill’s apartment. There are 4 people in the household. The rent is $1150 a month. The household pays $450 a month for electricity, water, and sewer. The total monthly household expenses are $1600. Steven’s share of the household expenses is $400. Steven pays $400 a month toward household expenses. Because Steven pays a pro rata share, the VTR does not apply.

b. PMV Rule The PMV is the maximum amount of ISM that can be counted in a given month. The PMV rule is used to determine the value of ISM when the VTR rule does not apply.

The PMV is equal to one-third of the SSI-FBR, for an individual or couple, plus $20. Effective 01/01/2026, the PMV for an individual is $351.33 and for a couple $517. Under the PMV rule, an individual can rebut the amount of ISM counted as income. An individual can rebut the PMV by showing:

i. That the current market value of ISM received, minus any payment that an individual makes for the ISM, is lower than the PMV; or ii. The actual amount of ISM received is lower than the PMV.

If the actual value of the ISM received is lower than the PMV, the Actual Value (AV) is used.

Example 1: Mr. and Mrs. Johnson live with their daughter, Barbara and her family in Barbara’s home. There are 7 household members. Mr. and Mrs. Johnson have a special diet that requires them to purchase their own food. The household pays $1400 a month for shelter expenses. Mr.