Does Owning a Home Affect Social Security Benefits?

Owning a home generally does not affect Social Security benefits for most individuals. For programs like retirement and disability benefits, the Social Security Administration (SSA) does not consider an individual’s assets, including homeownership, when determining eligibility or benefit amounts. However, for Supplemental Security Income (SSI), a needs-based program, homeownership can have specific implications, though a primary residence is typically excluded.

Core Factors for Social Security Benefits

Social Security retirement and disability benefits are primarily determined by an individual’s lifetime earnings and the Social Security taxes paid on those earnings. To qualify for these benefits, individuals accumulate “work credits” throughout their working lives. For 2025, one work credit is earned for each $1,810 in earnings, up to a maximum of four credits per year. Most individuals need 40 work credits, typically earned over 10 years, to qualify for retirement benefits. The number of work credits required for disability benefits depends on the individual’s age when the disability began.

The amount of Social Security benefits received is calculated based on an individual’s Average Indexed Monthly Earnings (AIME). The AIME represents a worker’s average monthly earnings from their highest 35 years of indexed earnings. These earnings are indexed to account for changes in general wage levels over time, ensuring that past earnings reflect current values. The AIME is then used in a formula to determine the Primary Insurance Amount (PIA), which is the basic benefit an individual receives if they claim retirement benefits at their full retirement age or become disabled.

Homeownership and Social Security Retirement and Disability Benefits

For Social Security retirement, disability (SSDI), and survivor benefits, owning a home does not impact eligibility or the amount of benefits received. These benefits are considered “earned” through contributions made via payroll taxes over a working career. The value of a home, whether it has a mortgage, or the amount of equity accumulated, are not factors in these benefit determinations.

The Social Security Administration does not consider assets or income levels when assessing eligibility for SSDI, as it is not a means-tested program. Similarly, for retirement benefits, personal assets like bank accounts, investments, or real estate holdings do not affect the monthly payment amount.

Homeownership and Supplemental Security Income (SSI)

Supplemental Security Income (SSI) operates differently from Social Security retirement and disability benefits because it is a needs-based program. SSI provides financial assistance to aged, blind, or disabled individuals who have limited income and resources, regardless of their work history. This program is funded by general U.S. Treasury funds, not by Social Security taxes.

For SSI eligibility, strict resource limits apply: $2,000 for an individual and $3,000 for a couple. Resources include cash, bank accounts, stocks, and other assets that could be converted to cash. However, a primary residence, the home an individual lives in, is excluded from these resource limits, regardless of its value. This allows SSI recipients to own their homes without jeopardizing their benefits, recognizing the home as a fundamental necessity for stability.

Proceeds from Selling a Home

Selling a home does not affect Social Security retirement, disability, or survivor benefits, as these programs are not asset-tested. The money received from a home sale is not considered earned income for these benefits, so monthly payments remain unchanged.

However, the proceeds from selling a home can impact Supplemental Security Income (SSI) benefits. While the primary residence is excluded, funds from its sale can be counted as a resource if not used appropriately within a specific timeframe. If an SSI recipient sells their home, they have a three-month period to use the proceeds to purchase another primary residence without the funds counting against their resource limit.

If proceeds are not used to buy another home, or if remaining funds exceed the SSI resource limits (e.g., $2,000 for an individual or $3,000 for a couple), eligibility can be temporarily affected. If benefits are suspended due to excess resources, individuals may have up to 12 months to “spend down” the funds on allowable expenses. Reinstatement requires documentation of how the proceeds were spent.