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Plain-language guides to the clergy housing allowance.

This is educational material, not tax advice — for your situation, talk to a CPA, EA, or attorney. Written by Nick Winnard and checked against IRS Publication 517.

Free template: Sample housing allowance designation resolution — an editable starting point to take to your board.

Housing allowance basics

How the clergy housing allowance limit actually works (the three-number test)

The amount of a housing allowance a minister can exclude from income is limited to the smallest of three numbers: what the church designated, what you actually spent, and the fair rental value of your home.

Written by Nick Winnard · Last reviewed September 20, 2026 · 6 min read

How to designate your housing allowance for next year: a step-by-step guide

Churches usually set the coming year's housing allowance in the fall. Here are the steps, what the IRS says a designation must look like, and what to bring to the meeting.

Written by Nick Winnard · Last reviewed September 20, 2026 · 7 min read

Fair rental value

Fair rental value for clergy: what it means and how to document an estimate

Fair rental value is one of the three numbers that limit a minister's housing allowance exclusion. Here is what goes into an estimate and how to document one you can explain.

Written by Nick Winnard · Last reviewed September 20, 2026 · 7 min read

Recordkeeping and year-end

What to hand your CPA or treasurer at year-end: a clergy housing checklist

A short, practical list of what to gather so your tax preparer or church treasurer can handle your housing allowance quickly and accurately.

Written by Nick Winnard · Last reviewed September 20, 2026 · 5 min read