The big change: rent from your home is now exempt
Under the government's Housing for All plan, the way Fair Deal treats rental income from your principal private residence was reformed to encourage empty homes back into the rental market. The timeline:
- Before Nov 2022 — rent from the home was assessed like any income, at 80%.
- From 1 November 2022 — reduced to 40%.
- From 1 February 2024 — 100% exempt. None of the rent from your principal residence counts towards your Fair Deal contribution.
So if your relative rents out their own home while in care, that rental income is now left out of the financial assessment entirely. You can read the government's own announcement of the reform on gov.ie.
How to claim the exemption
- Rent the home out and register the tenancy with the Residential Tenancies Board (RTB), as required for most tenancies.
- Apply to the HSE to have the rental income from the principal residence exempted from the assessment, submitting the supporting documentation.
- Keep records — the tenancy agreement, RTB registration, and rent received.
Confirm the current process and any documentation on the official HSE financial-assessment page.
Renting the home vs the 3-year cap — two different things
It's easy to mix these up. The 3-year cap is about the capital value of the home as an asset — it stops being counted after three years in care. The rental exemption is about the income you get from renting it out. They operate independently: renting the home doesn't change the 3-year cap, and the cap doesn't change the rental exemption. You can benefit from both.
Should you rent it out?
With the rent now exempt from the Fair Deal assessment, renting is far more attractive than it once was — it brings in income, keeps the property occupied and maintained, and, if there's a Nursing Home Loan against the home, the rent can help. But it's still a real commitment: you take on landlord responsibilities and RTB obligations, and the rent remains taxable through Revenue even though it's exempt from Fair Deal. It's a personal and financial decision — worth a conversation with an accountant or adviser.
Last reviewed: August 2026. Rules can change — confirm the current position with the HSE before acting.
Frequently asked questions
Is rent from the family home assessed under Fair Deal?
No — not any more. Since 1 February 2024, rental income from renting out your principal private residence while you are in care is fully exempt from the Fair Deal financial assessment. You need to apply to the HSE for the exemption, but none of that rent counts towards your contribution.
How much of the rent counts towards my contribution?
For your principal private residence, none of it counts — it is 100% exempt as of February 2024 (it was reduced from 80% to 40% in November 2022, then made fully exempt). Rental income from any other property that is not your main home is still treated as general income and assessed at 80%.
Do I have to register the tenancy with the RTB?
You should register the tenancy with the Residential Tenancies Board (RTB) as normal — it is a legal requirement for most tenancies — and submit the supporting documentation when you apply to the HSE for the rental-income exemption.
Does renting out the home affect the 3-year cap?
These are two separate things. The 3-year cap concerns the capital value of your home as an asset; the rental exemption concerns the income you receive from renting it. Renting the home out does not change the 3-year cap on its value — see our 3-year cap guide.
Is the rental income still taxable?
Yes. Being exempt from the Fair Deal assessment does not make the rent tax-free — rental income is still subject to normal income tax through Revenue. Speak to an accountant about your tax position.