How does USDA determine whether to include asset income for households with $5,000 or fewer in cash value?

USDA determines whether to include asset income for households with a cash value of $5,000 or fewer by incorporating the actual income derived from these assets. This approach focuses on the real income that the household is generating from its assets rather than making assumptions or estimations about potential future income. Counting only the actual income ensures that the assessment is grounded in the household's current financial situation, which aligns with the USDA's goal of evaluating the genuine availability of funds for the household.

Other methods, such as estimating future income or calculating an average, do not accurately reflect the household's immediate financial reality, which is essential for making equitable lending decisions. By focusing on actual income, the USDA can provide more accurate assistance to those who genuinely need it without overestimating their financial capabilities based on theoretical projections.