Does Rental Income Affect SSDI?

If you’re receiving or applying for Social Security Disability Insurance (SSDI), it’s important to understand how different types of income can affect your benefits. A common question we hear is: “Does rental income affect SSDI?” The answer depends on several factors, including whether the income is earned or passive and how involved you are in managing the property.

In this blog, we’ll explain how the Social Security Administration (SSA) views rental income, the difference between earned and unearned income, and when rental income might impact your SSDI eligibility.

Understanding SSDI and Income Rules

Social Security Disability Insurance is a federal program that provides monthly payments to people who have worked and paid Social Security taxes but can no longer work due to a disability. To qualify, you must meet the SSA’s definition of disability and not engage in “substantial gainful activity” (SGA).

In 2025, the monthly SGA limit is $1,620 for non-blind individuals and $2,700 for blind individuals. If your earned income exceeds these limits, you may lose your SSDI benefits.

That’s where the distinction between earned and unearned income becomes crucial.

Earned vs. Unearned Income

Earned income is money you make through active work, like wages, self-employment, or running a business. Unearned income comes from sources that don’t require your active labor, like interest, dividends, or rental income, if it’s passive.

The SSA only counts earned income toward the SGA limit. This means that most unearned income, including passive rental income, does not affect your SSDI benefits.

However, things get more complicated if you actively manage your rental property.

When Rental Income Might Affect Your SSDI

If your rental income is truly passive, meaning you don’t do anything other than collect rent, it generally won’t count as earned income. For example:

• You own a home or apartment and hire a property manager.
• You don’t perform repairs, screen tenants, or collect rent personally.
• You don’t materially participate in the rental activity.

In these cases, the income is not counted toward SGA, and you can keep receiving SSDI benefits.

But if you are actively involved in managing the property—doing repairs, finding tenants, collecting rent, or handling complaints—the SSA might consider it earned income, especially if:

• You spend significant time on property management tasks.
• You report the income as self-employment income on your taxes (Schedule C).
• You operate your rental property as a business.

In this scenario, your income could be subject to SGA rules, potentially putting your SSDI benefits at risk.

What About SSI?

While this blog focuses on SSDI, it’s worth briefly noting that Supplemental Security Income (SSI) treats income differently. SSI is a needs-based program, and both earned and unearned income, including rental income, can reduce your benefit amount.

Even if you’re not actively managing the property, SSI could be affected by any rental payments you receive.

What Should You Report to the SSA?

Always report any source of income to the SSA, even if you believe it doesn’t affect your benefits. Rental income, whether earned or unearned, should be disclosed to avoid future issues or overpayment penalties.

Provide clear documentation about:

• Whether you materially participate in the rental activity
• How the income is reported on your taxes
• Any work you perform related to the property
• Any changes to your income

You may also want to speak with a disability lawyer to make sure your rental income is classified appropriately.

So, does rental income affect SSDI? In most cases, passive rental income does not count against the SSDI earnings limit and won’t jeopardize your benefits. But if you’re actively involved in the property’s day-to-day operations, the SSA may view it as earned income, which could put your eligibility at risk.

Understanding these rules is critical to protecting your benefits and your financial stability.

Need Help with Your SSDI Case?

At Leventhal, Sutton & Gornstein, we focus on helping individuals like you get the Social Security Disability benefits they deserve. Whether you’re just starting your application or dealing with a denial, our experienced team is here to guide you every step of the way.

If you’re unsure how your rental income—or any other income—might impact your SSDI eligibility, we can help you understand your rights and protect your benefits.

Contact Leventhal, Sutton & Gornstein today for a free consultation. We’ll help you navigate the system with confidence and compassion.