Places without developed rental markets

In places in prescribed zones without developed rental markets, you have to use other methods to set a value on the housing benefit. The method you use depends on whether you own the residence or rent it from a third party.

If you provide both rent and utilities and can calculate their cost as separate items, you have to determine their value separately. Add both items to get the value of the housing benefit.

If your employee reimburses you for all or part of their rent or utilities, determine the benefit as explained below. Subtract any amount reimbursed by your employee and include the amount that remains in their income.

Accommodations you own

If you own a residence that you provide rent free to your employee, report as benefit whichever of the following amounts is less:

  • the fair market value of the rent
  • the ceiling amount

Similarly, the amount you have to report as benefit for utilities is whichever of the following amounts is less:

  • the fair market value of the utilities
  • the ceiling amount

Accommodations you rent from a third party

If you rent a residence from a third party and provide it rent free to your employee, report as a benefit whichever of the following amounts is less:

  • the amount you pay the third party
  • the ceiling amount

Similarly, the amount you have to report as a benefit for utilities is whichever of the following amounts is less:

  • the amount you pay the third party
  • the ceiling amount
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