A parsonage (or rental) allowance includes church provided parsonages, rental allowances with which the minister may rent a home, and housing allowances with which the minister may purchase a home. A minister can receive a parsonage allowance for only one home. The term home means a dwelling place, including furnishings, and the appurtenances (e.g., garage)
Ministers are allowed to exclude a parsonage allowance from gross income. To be excludable, the fair rental value of the parsonage or the parsonage allowance must be reasonable in amount.