Legal Definitions - presumed maximum value (PMV)

The term presumed maximum value (PMV) refers to a specific rule used by the Social Security Administration (SSA) when calculating Supplemental Security Income (SSI) benefits. It sets an upper limit on the monetary value assigned to certain types of non-cash assistance, known as "in-kind support and maintenance," that an SSI recipient might receive.

This rule applies when an individual or couple receives some form of non-cash help with living expenses (like free rent, utilities, or food) but does not receive all their food and shelter from the household they live in. It's distinct from situations where someone receives all their food and shelter from the household, which falls under a different SSI rule.

The PMV acts as a cap. The SSA calculates a maximum amount that can be counted as income from this in-kind support. This maximum is typically one-third of the federal benefit rate for SSI, plus an additional $20. However, if the actual value of the support received is less than this calculated PMV, then the SSA uses the lower, actual value when determining the person's countable income. This ensures that the value of non-cash help doesn't reduce an individual's SSI benefits excessively, especially if the actual support is modest.

Here are some examples of how the presumed maximum value rule might apply:

• Scenario: Partial Rent Payment by a Family Member
  Example: Maria, an SSI recipient, lives in her own apartment. Her adult daughter, Elena, helps Maria by consistently paying $200 directly to Maria's landlord each month. Maria pays the remaining portion of her rent and covers all her own food and utility bills.

  How it illustrates PMV: Maria is receiving "in-kind support" (the $200 rent payment) but is not receiving all her food and shelter from the household she lives in (her own apartment, where she covers most expenses). The SSA would assess the value of Elena's $200 contribution. If $200 is less than the calculated presumed maximum value, then $200 would be counted as income, potentially reducing Maria's SSI benefit. However, if $200 is *more* than the PMV, only the PMV amount would be counted, capping the reduction to her benefits.

• Scenario: Utilities Paid by a Friend
  Example: David, an SSI recipient, shares a house with a friend. David pays his agreed-upon share of the rent and buys all his own groceries. His friend, however, generously insists on paying the entire electricity bill for the house every month, which typically averages $150.

  How it illustrates PMV: David is receiving in-kind support (the benefit of free electricity) from his friend. He is not receiving all his food and shelter from the household (he pays his own rent share and buys his own food). The SSA would evaluate the value of David's share of the electricity benefit. If this value (e.g., half of the $150 bill, or $75) is less than the PMV, that amount is counted as income. If it's higher, the PMV acts as a cap, limiting the amount that reduces his SSI benefits.

• Scenario: Support in a Non-Medical Group Home
  Example: Sarah, an SSI recipient, resides in a non-profit group home designed for adults with disabilities. The group home provides her with a private room and access to communal facilities like a shared kitchen and laundry. Sarah is responsible for purchasing and preparing all her own food, and she pays a small monthly fee for her room. Occasionally, a local charity covers this room fee for her.

  How it illustrates PMV: Sarah receives some in-kind support (the room, communal services, and occasional fee payment by the charity). However, she is not receiving all her food and shelter from the "household" (the group home does not provide all her meals). When the value of the room, services, or the charity's payment is assessed, the presumed maximum value rule would apply. This rule would cap the amount counted as income, preventing her SSI benefits from being reduced by more than the established maximum, even if the actual value of the support were higher.