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    Welcome to the third installment of our series on the Minister’s Housing Allowance, a unique provision designed for those in spiritual service. In our previous posts, we have demystified the eligibility criteria, historical background, and the methods for calculating this allowance. Today, we’ll dive into what expenses can be covered under the Minister’s Housing Allowance. 

    It is essential to understand what expenses qualify, as it enables ministers to determine their allowance and avoid any potential pitfalls accurately. So, let’s explore!

    What Expenses Are Covered?

    The Minister’s Housing Allowance covers a wide range of housing-related expenses, including but not limited to:

    • Rent or Mortgage Payments: Monthly rent or mortgage principal and interest.
    • Property Taxes and Insurance: Real estate taxes and homeowner’s insurance.
    • Utilities: Gas, electricity, water, sewer, and other essential utilities.
    • Maintenance and Repairs: General upkeep, including repairs to the structure, painting, etc.
    • Furnishings: Furniture, appliances, curtains, and other related expenses.

    Often Overlooked Expenses:

    Some expenses may not seem immediately apparent but can be included in the housing allowance:

    • Lightbulbs: Yes, even the cost of lightbulbs can be included.
    • Landscaping and Lawn Care: Expenses related to maintaining the yard or garden.
    • Pest Control: Regular or one-time pest control services.
    • Cleaning Supplies: Items used to support the cleanliness of the home.

    Common Expenses That Are NOT Covered:

    While many housing-related expenses are eligible, some common misconceptions lead to misunderstandings:

    • Home Office Expenses: Costs related to a home office are typically not included.
    • Food and Groceries: These are considered personal living expenses and are not covered.
    • Personal or Family Expenses: Any expenses not directly related to providing a home.
    • Car and Transportation Costs: These are not considered housing-related expenses.

    For more detailed guidance on what constitutes housing expenses, refer to IRS Publication 517.

    Home Loans and Housing Allowance Eligibility

    When it comes to home loans and the Minister’s Housing Allowance, there are specific considerations that must be kept in mind, particularly regarding home equity loans.

    Home Equity Loans for Housing Expenses:

    Home equity loans to fund housing-related expenses are eligible for the housing allowance. This includes not only regular mortgage payments but also significant maintenance or improvements, such as:

    • Replacing a Roof: Major repairs like a roof replacement can be a part of the housing allowance if financed through a home equity loan.
    • Home Remodeling: Expenses related to remodeling or upgrading the home can also be included.

    Home Equity Loans for Other Purposes:

    However, it’s essential to note that not all home equity loans qualify. If the funds from a home equity loan are used for other purposes, such as:

    • Paying for College Tuition: Funds for education expenses are not considered housing-related.
    • Debt Consolidation: Utilizing a home equity loan to consolidate other debts does not qualify for the housing allowance.

    These examples would not be eligible for inclusion in the housing allowance, even though they are tied to the home’s equity.

    Understanding the Distinction:

    The differentiation between eligible and ineligible home equity loans underlines the need for careful financial planning and understanding the specific rules governing the Minister’s Housing Allowance. Only expenses directly related to providing a home for the minister and their family are considered. Therefore, the way in which a home equity loan is utilized plays a decisive role in determining its eligibility.

    This section further illustrates the multifaceted nature of the housing allowance and emphasizes the need for meticulous record-keeping and adherence to the specific guidelines. When in doubt, consulting with a financial expert or referring to relevant IRS guidelines can provide much-needed clarity and confidence in navigating these complex provisions.


    Understanding what expenses are covered and what are not is crucial in correctly calculating and utilizing the Minister’s Housing Allowance. By paying attention to everyday and often-overlooked expenses, ministers can align their financial planning with legal requirements and make the most of this provision. Our next article in this enlightening series will delve into further aspects of the Minister’s Housing Allowance, so be sure to read on when it’s available. Your journey towards financial empowerment continues here!

    For informational purposes only. It is important to consult a professional before implementing any strategies or ideas.