<p>I didn't see anything specifically addressing this question on the forum, but sorry if it's a repeat. My parents only own one house, but they moved to a parsonage this past summer (my dad's a pastor) and started renting out the one house they own. I'm afraid they still have to report the equity as a current asset on the FAFSA, but everything I found said the "second house" must be reported as an asset. In this situation they technically don't own a "second" house and are financially in the same situation as they were before the move (except, of course, for the rental income, which I included). Thanks for your help.</p>
<p>The wording in FAFSA is that the principal place of residence does not have to be reported as an asset. Your parent’s principal place of residence is the one they live in. The property they own is not currently their principal place of residence as they do not live there. So it does have to be reported as an asset.</p>
<p>from <a href=“http://studentaid.ed.gov/students/publications/completing_fafsa/2011_2012/ques5-1.html[/url]”>http://studentaid.ed.gov/students/publications/completing_fafsa/2011_2012/ques5-1.html</a></p>
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<p>Yeah, that’s what I was guessing, but I thought it made enough of a difference that it was worth asking about. Thanks.</p>