Is it true that the pastor's housing allowance has to be $1000.00 a month? Is there a minimum?
There is no minimum, but the Internal Revenue Code does establish a maximum.
A minister who receives a housing allowance may exclude the allowance from gross income to the extent it is used to pay expenses in providing a home. A housing allowance is also available to a minister living in a parsonage to the extent he uses the allowance for his personally paid out-of-pocket costs not paid by the church. The IRS lists only food and servants as prohibitions to allowance housing expenses.
If a minister owns a home, the amount excluded from the minister’s gross income as a housing allowance is limited to the least of the following:
- the amount actually used to provide a home,
- the amount officially designated as a housing allowance, or
- the fair rental value of the home.