One-Third Reduction Rule

Also know as the “VTR” or the “Value of The Reduction.” This rule is applied when an SSI recipient resides in the “home of another,” i.e., does not pay his or her fair share of the household expenses. In such a case, the recipient’s SSI monthly cash payment is reduced by one-third of the federal benefit rate. By contrast, when a recipient resides in his or her own home, but receives in-kind assistance, the Administration applies the “Presumed Maximum Value” rule