Who determines a minister's housing allowance and the fair rental value of a parsonage? When beginning a new pastoral position there are often many questions that the pastor and the church may have. The most common questions are concerning housing allowance (Who determines the amount of the allowance and how is it designated?) or parsonage fair rental value (How does this determination affect compensation?). This post discusses the unique aspects of each of these pastoral housing methods, and answers some of the common questions. Housing Allowance A housing allowance is a non-taxable benefit that is available only to ministers, and is received as a designated portion of the pastor's salary to pay for housing that he owns or rents himself. Other non-ministerial members of the church staff are not eligible. To establish a housing allowance, the minister must have the amount officially designated by the church's governing body, whether that is the deacon board or the finance...
This blog posts answers to questions given to us by ministers and others serving in Christian ministries advancing the gospel of Jesus Christ. It also discusses other financial topics that those in gospel ministries face. We trust the information provided can be helpful to you.