How are shelter and utility deductions determined, and what documentation is required for SNAP claims?

1. How the shelter deduction is calculated: the federal baseline and the “excess” rule

SNAP treats shelter as a deductible expense only when a household’s allowable shelter costs—rent or mortgage, taxes, homeowner fees and included utilities—exceed 50 percent of the household’s net income after other deductions; the deduction equals the amount over that 50 percent threshold but is subject to a federally set cap for most households ^{[1] [2]}. For fiscal year 2026 the excess shelter deduction cap for the 48 contiguous states and D.C. is set at $744, meaning even if actual excess shelter costs are higher, the deduction cannot exceed that cap unless a household includes an elderly or disabled member who may be allowed amounts above the standard cap ^{[2] [3]}.

2. Utilities: Standard Utility Allowances, actuals, and new inclusions

Most states use a Standard Utility Allowance (SUA) or other standard allowances (heating/cooling, telephone etc.) to account for utility costs rather than requiring households to document every bill, and states may allow a set utility amount in lieu of actual costs; federal rules updated for FY2026 also permit basic internet to be treated as an allowable utility and require states to refresh SUA methodologies at least every five years ^{[1] [6]}. Some states still allow households to claim actual utility expenses if they choose and can verify them, but many programs and analyses treat SUAs as the administrative norm to preserve consistency and reduce documentation burdens ^{[6] [7]}.

3. Caps, homeless and elderly/disabled exceptions

There are special provisions: homeless households can opt for a standard homeless shelter deduction (for FY2026 $198.99 in most areas) instead of itemizing shelter and utilities, and households with elderly or disabled members may qualify for larger excess shelter deductions unconstrained by the normal cap—rules designed to reflect higher medical or fixed housing burdens among those populations ^{[8] [4] [3]}. Advocacy and policy analyses note these exceptions can materially affect benefit levels and caseloads, and recent legislative changes cited by CBPP are projected to shift averages and state workloads ^[9].

4. What documentation and verification are required

States have authority to set verification practices but federal guidance and state manuals increasingly demand third‑party verification for shelter expenses: several state policy manuals and agency guidance now require landlords’ leases, mortgage statements, utility bills, or vendor documentation as proof, and Georgia’s SNAP manual explicitly mandates third‑party verification of all shelter expenses since July 2024 ^{[5] [10]}. Other state guidance emphasizes allowing deductions even if expenses were unpaid, allows retroactive utility allowances when appropriate, and clarifies that outside third‑party or vendor‑paid shelter costs typically are not counted as household expenses—so documentation must show who actually pays the bill ^{[11] [12]}.

5. State variation, administrative tradeoffs and political context

Implementation varies: states decide SUAs and verification procedures within federal rules, producing divergent outcomes for similar households ^{[6] [7]}. Policy actors debate tradeoffs—stricter verification reduces fraud risk but raises administrative burden and can deter eligible households; looser rules simplify access but risk inaccurate payments—an implicit agenda reflected in recent regulatory updates that both tighten methodological review of SUAs and expand allowable costs like basic internet ^{[6] [9]}. Legal aid organizations and state manuals also flag complexity: shelter deductions are not a dollar‑for‑dollar pass‑through and can be confusing for applicants and front‑line workers, producing inconsistent local practice ^{[13] [14]}.

6. Reporting limits and practical takeaway

The available federal memos, state manuals and policy analyses clearly establish the mechanics—excess shelter deduction over 50 percent of net income, state SUAs, caps, and verification requirements—but exact paperwork demands and how strictly third‑party proof is applied depend on the state agency’s rules and automation systems, and those local variations are not fully captured in the national sources reviewed here ^{[5] [6] [11]}. Practically, applicants should expect to document leases, mortgage statements, and utility bills where requested, know that SUAs may substitute for bills in many states, and be aware of special rules if they are homeless, elderly, or disabled ^{[10] [8] [4]}.