Receiving Property or Income After Applying for Disability

When you submit your application for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), you’ll have to provide Social Security with some basic information about your financial situation. That’s because having income above what the agency considers to be substantial gainful activity can disqualify you from receiving any disability benefits, and eligibility for the needs-based SSI program comes with its own income and asset limits.

Things can get more complicated if you’re receiving “passive” income—money that you’re not actively earning, like income from a rental that you don’t manage—or you’ve inherited property. How Social Security views your finances can have a significant impact on whether or not your disability claim is successful, so it’s a good idea to learn a bit about the basics to avoid any surprises down the road.

How Does Passive Income Affect Social Security Benefits?

In order to be considered disabled by Social Security, you’ll need to show that you have a medical condition that keeps you from earning more than $1,690 per month (in 2026) for at least 12 months. (42 U.S.C. §423 (d)(1)(A) (2026).) This is true no matter if you’re applying for SSDI, SSI, or both. Since passive income isn’t earned, it won’t count as substantial gainful activity for disability purposes.

But if Social Security finds that you’re actively involved in the money generating pursuits rather than just cashing the check, the agency can consider the money as “earned” and count it towards the $1,690 monthly limit. And because SSI has a cap on all income, both earned and unearned, even passive income can disqualify you from getting benefits under that program. Let’s see how these rules might apply in common scenarios involving rental income.

When Does Rental Income Count Against Social Security?

Most of the time, Social Security treats rental income as “unearned.” Unless the evidence shows otherwise, the agency will assume that you have a building manager or superintendent to physically maintain the rental property rather than doing it yourself. The more work you put in to get that rental income, however, the more likely Social Security will be to treat it as earnings that count towards the substantial gainful activity amount. Examples may include the following:

• you’re collecting rent from properties you’re selling as part of your work as a real estate dealer
• you’re putting in a lot of time each month operating and keeping up your rental properties, or
• you’re providing services for the convenience of your renters, including housekeeping, meal, or laundry services.

Furthermore, even unearned income counts towards the SSI eligibility limits. (Because SSDI eligibility is based on your work credits rather than your financial need, you can have unlimited rental income without having it affect your ability to receive SSDI, provided it’s truly unearned.) And if your SSI application is successful and you’re awarded benefits, any rental income you receive will reduce the amount of your monthly SSI payment.

Does the Value of My Rental Property Affect Social Security?

Putting aside the amount of the rental income you receive, any real estate that you own (other than your primary residence) counts toward the SSI asset limit. So even if you’re only making, say, $100 per month from your rental property—well below both the SSI income limit and the substantial gainful activity threshold—Social Security still counts the value of the land, building, or unit you’re renting out when determining if you’re eligible for SSI. Any property you own that’s worth more than $2,000 would make you "overresourced" and ineligible for SSI benefits.

In contrast, SSDI doesn’t have any restrictions on how many assets you can have and still qualify for the program. The value of any real property you own won’t affect your ability to receive SSDI benefits (or the amount you receive if you’re approved).

What Should I Do If I Inherited Property?

You’re required to report any changes in your income and resources to Social Security after you apply for benefits. SSDI doesn’t take unearned income or asset value into account, so any cash and property you inherit won’t change your eligibility status. But an inheritance can affect your eligibility for SSI if it puts you over the $2,000 asset limit. Resources that can potentially push you past the asset limit include:

• money in bank accounts
• cash gifts (including digital currency)
• stocks, bonds, and mutual funds
• vehicles (other than the one you use for transportation)
• retirement plans, and
• jewelry (except wedding and engagement rings).

If the value of your inherited assets exceeds $2,000 and you filed for SSI, you may receive a technical denial once your application is next reviewed. However, you may be able to shield up to $100,000 from the SSI resource limit by setting up what’s called an “ABLE account.”

ABLE accounts allow people who became disabled before age 46 to put funds into a special bank account that isn’t counted towards the SSI asset limit. But you can only use the funds in an ABLE account for qualified disability-related expenses, like medical care, housing, education, and vocational training. (You can learn more in our article on how ABLE accounts work.)

What Else Should I Know About Getting Property or Income While Applying for Disability?

By now, you may have noticed that the rules about income and assets are more lax for SSDI than they are for SSI. That’s because SSDI is a type of insurance plan where your payroll taxes act as “premiums” for coverage that kicks in when you become disabled. Since you already “bought into” the SSDI plan when you were working, Social Security isn’t particularly concerned about how much money you have as long as it doesn’t constitute substantial gainful activity.

SSI, on the other hand, is targeted for adults with disabilities (and their families) who need financial help the most, regardless of their work history. That’s why Social Security will frequently reassess your eligibility for the program to make sure that you’re under the resource caps. You’ll be asked about your income and assets first in the initial phone interview, then again if you’re found medically disabled, and every few years afterwards once you start getting benefits.

When you’re receiving SSI, you have to notify Social Security whenever you get additional income or resources. That includes any changes to your household income, in-kind support, or child support. If you don’t let Social Security know about these changes, the agency may find that you have overpayments that you have to reimburse (and if Social Security thinks that you knowingly withheld information because you wanted more money, you could be charged with fraud).

Protect Your Disability Benefits With Legal Help

When you’re relying on Social Security disability benefits (whether SSDI or SSI), it’s important to understand how your income and resources affect your eligibility. Remember, you must report financial changes to Social Security. Failing to do so can cost you your disability benefits.

If you expect to inherit cash or property, or you expect your income to increase, you’ll likely benefit from speaking with an experienced disability attorney. A lawyer can help you determine what you can do to protect your benefits. And if Social Security has denied or revoked your disability benefits because of income or asset issues, hiring an attorney for your appeal can improve your chances of winning your claim.