SNAP, the food stamp program, caps the shelter deduction at $769 a month for most households in the 48 states and D.C. A household with a member 60 or older, or a disabled member, has no cap. USDA’s eligibility page says “all shelter costs over half of the household’s income may be deducted” for those households. The $769 limit is part of the fiscal year 2027 cost-of-living adjustments, which run from October 1, 2026 through September 30, 2027.
The deduction matters because SNAP does not pay on gross income. It pays on net income, which is what is left after deductions. A bigger shelter deduction means lower net income, and lower net income means a bigger monthly benefit.
The rule is easy to miss. Many older renters and homeowners on Social Security report rent or a mortgage to their caseworker but leave out heating bills, property taxes or water. Anyone in a household with a member 60 or older or a disabled member, and with housing costs above half of income, now has a reason to check what the case file actually lists.
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How the uncapped deduction works
Federal rules set the order. First the state takes the standard deduction, which is $217 for households of one to three people in the 48 states and D.C. Elderly and disabled members can also deduct medical costs above $35 a month that insurance or someone outside the home does not pay, according to USDA’s rules for elderly and disabled households.
What remains is the household’s adjusted income. The shelter deduction covers monthly shelter costs above 50 percent of that figure, under federal regulation 7 CFR 273.9. The regulation applies a ceiling only if the household has no elderly or disabled member. For households that do, the whole excess counts.
USDA defines “elderly” simply: 60 years or older. The disabled definition covers people who receive certain disability benefits, and it includes some veterans, such as those who are totally disabled or permanently homebound.
What counts as a shelter cost
The list is wider than rent. USDA’s page on elderly and disabled rules names fuel to heat and cook with, electricity, water, the basic fee for one telephone, rent or mortgage payments and interest, and taxes on the home. The federal regulation adds condo and association fees, insurance on the structure itself, sewerage, garbage collection and basic internet service. Insurance on furniture or belongings does not count, and neither do one-time deposits.
Many states use a standard utility allowance in place of actual bills. The regulation lets a state apply a set figure for heating and cooling, or a limited allowance for other utilities. Whether a household gets the standard figure or its real bills depends on the state, so the state agency has the final say on the number.
A worked example with 2026-27 figures
Take a single person, 60 or older, living on $1,400 a month in Social Security. This is an illustration built from the federal figures, not a state calculation. The standard deduction of $217 leaves $1,183. Half of that is $591.50.
Say rent and utilities come to $1,500. The excess over half of income is $908.50. An uncapped household deducts all of it, which leaves net income of $274.50. A household with the $769 cap would deduct $769 and be left with net income of $414.
USDA says the allotment is net income multiplied by 0.3, subtracted from the maximum for the household size. The maximum for one person is $306. The uncapped case works out to about $223.65 a month. The capped case works out to about $181.80. The difference is roughly $41.85 a month, or about $502 a year, from a single line on the application.
The gap grows with housing costs. A household with $2,000 in shelter costs would see a larger uncapped deduction, while the capped household would stay stuck at $769. Because the benefit is a share of net income, the uncapped household keeps gaining until the benefit reaches the maximum allotment.
Other rules that apply to older and disabled households
The shelter rule is one of several that treat these households differently. USDA’s eligibility page says a household with an elderly or disabled person only has to meet the net income limit, which is $1,330 a month for one person in the 48 states and D.C. and rises by $474 for each added member. Other households must pass a gross income test as well.
The asset limit is $4,750 for a household with at least one member 60 or older or disabled, compared with $3,000 for everyone else. USDA also lists a gross income limit of $2,195 for one person when elderly or disabled members form a separate household.
The figures differ in Alaska, Guam and the U.S. Virgin Islands. The cost-of-living memo, issued August 21, 2026, sets those caps at $1,229, $903 and $606. Hawaii has its own cap, and USDA’s tables for it should be checked against the memo before relying on a number.
Where to report the costs
Each state runs its own SNAP office, and that office decides what goes into the case. USDA points households to its state directory for the right agency. The official place to start is USDA’s SNAP eligibility page, which lists the deductions and links to the rules for older and disabled households.
Households can ask the caseworker to list every allowable cost: rent or mortgage, property tax, insurance on the structure, heating and cooling, electricity, water, the phone and internet. Medical bills above $35 a month belong on the same review. Both deductions lower net income, and each change can raise the monthly benefit.
Will the next review catch every cost?
The next recertification is the moment the numbers get reset. A household that moved, saw a rent increase or started paying a new property tax bill may be carrying an old figure. The cap is $769 for most households through September 30, 2027, and the rule for 60-plus and disabled households has no ceiling at all. The question for those households is whether the case file shows what the household actually pays.
Is the shelter deduction on the case file right?
A household with a member 60 or older can have rent, heating and property tax well above half its income and still be budgeted as if a $769 ceiling applied. A missed renewal date or an outdated cost line can cut the monthly benefit or end the case.
The SNAP & Medicaid Renewal Organizer walks through SNAP and Medicaid renewal and shows the senior deductions that raise the benefit. It includes 51 state packs and a renewal and reporting calendar, laid out in parts that cover the SNAP recertification and the senior rules most people miss.
Get the senior shelter-deduction organizer and SNAP renewal calendar →
More Financial Reading
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- 15 Ways Out of 22% Credit Card Interest
This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
