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Determining the fair rental value is solely the responsibility of the minister, and the IRS doesn't give us much help on this issue. The IRS simply tells us the fair rental value should be based on comparable rental values of other similar residences in the immediate neighborhood or community, comparably furnished. (All too often there are not similar residences in the immediate neighborhood or community, comparably furnished!) One of the best methods to establish the fair rental value of your housing is to request a local realtor to estimate the rental value in writing. Place the estimate in your tax file and annually adjust the value for inflation and other local real estate valuation factors.