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Client gave me a 1099-Misc with $6334 in box 1 rental from the local housing authority. I asked her what it was. She said she was trying to help her granddaughter afford a place to live. She is renting her a house she owns and the City is paying about 1/2 the rent under Section 8 subsidy.

Do I treat this like any other rental? I'm not sure what the fair rental value is in her neighborhood, but I'm guessing if she's getting $1000 per month between granddaughter & City, it should be enough to qualify. Zillow shows house worth $163K.

Thanks.

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