Your Home Is Worth $800,000—Can You Still Qualify for Medicaid in Florida?

A question came up recently at dinner with a group of estate planning attorneys that really gets to the heart of a common worry for many Florida homeowners: "What happens if my house is worth too much for me to qualify for Medicaid?"

It's a legitimate concern. After all, Florida is one of those states where your home can appreciate dramatically in value—sometimes without you even realizing it. Think about neighborhoods like Miami Shores, where modest homes purchased for $30,000 or $40,000 back in 1979 are now worth $700,000, $800,000, or even $900,000. Location matters, and property values have soared across the state.

So here's the situation: You're getting older, you need long-term care, and you're looking into Medicaid to help cover those costs. Your income isn't too high, you don't have substantial savings, but your home—the place you've lived for decades—is now worth more than Florida's Medicaid home equity limit.

Does that mean you're out of luck? Absolutely not.

What Is the Florida Medicaid Home Equity Limit?

In Florida, your primary residence is generally not counted as an asset when you apply for Medicaid. That's good news. However, there's a catch: the equity in your home cannot exceed a certain limit. As of 2025, that limit is $730,000.

Here's how it works. If you own a home worth $800,000 but still owe $100,000 on your mortgage, your equity is $700,000—and you're within the limit. But if that same $800,000 home is paid off completely, you've got a problem. Your equity exceeds the threshold, which could technically prevent you from qualifying for Medicaid.

This number adjusts periodically, usually once a year, but for now, $730,000 is the magic number you need to keep in mind.

When the Home Equity Limit Doesn't Apply

Here's something many people don't realize: If you're married and your spouse still lives in the home, or if you have a dependent child residing there, the home equity limit doesn't apply at all. Your home could be worth $5 million, and Medicaid won't say a word about it.

This exception exists to protect spouses and dependents from being forced out of their homes. So if you're part of a married couple, or if you have a disabled or dependent child living with you, you can breathe a little easier.

What If You're Single and Your Home Exceeds the Limit?

Let's say you're single, you live in an $850,000 home with no mortgage, and you don't have a dependent child at home. That's where things get a bit more complicated—but not impossible.

There are several strategies that can help you qualify for Medicaid, even when your home equity is over the limit. Here are the most common approaches:

Option 1: List Your Home for Sale

While your property is actively listed and the sale is pending, Medicaid will not count it as an asset. This works well if you're moving into a facility and need to sell the house anyway—perhaps because there's no one to handle the upkeep, property taxes, or maintenance.

One important thing: you do have to accept reasonable offers. This isn't a strategy where you can just list the home at an inflated price to avoid selling. But if a sale makes sense for your situation, this can be a straightforward solution. Plus, there are ways to protect significant amounts of money from that sale using other planning tools.

Option 2: Take Out a Home Equity Loan or Line of Credit

If you'd prefer to keep your home rather than sell it, another option is to reduce your equity by taking out a loan. Going back to our earlier example: if you have an $800,000 home with no mortgage, you could take out $70,000 in equity. That brings you down to exactly $730,000 in equity—right at the limit.

The $70,000 you've borrowed can then be protected using another Medicaid planning technique, and you're back in compliance with the equity limit. This approach works particularly well if you want to preserve your home for family members or if you're planning to continue living there while receiving home care benefits.

Option 3: Claim Undue Hardship

This is the catch-all solution, and while it's not the first choice in every situation, it can be incredibly effective in the right circumstances.

The undue hardship exception allows you to argue that denying you Medicaid based solely on your home equity would be unfair. This is particularly relevant for people in neighborhoods like Miami Shores, where homes have appreciated dramatically but the homeowners themselves are far from wealthy.

Picture this: You're receiving $2,300 a month from Social Security. You have modest savings in your bank account. You've lived in the same small, middle-class home for 40 years. You're not rich—you just happened to buy in a neighborhood that became highly desirable. Should you really be denied access to home care benefits just because your house is now worth $800,000?

In cases like this, an undue hardship claim can be very successful. It would be genuinely unfair to penalize someone who lacks disposable income and substantial assets simply because they've remained in their longtime home.

The Bottom Line

Having a home worth more than $730,000 in equity is not the end of the road when it comes to qualifying for Medicaid in Florida. In fact, there's almost always a solution—a legal and ethical way to help you access the benefits you need without forcing you to sell your house, wait five years, or spend down your life savings.

Every situation is different. Maybe you have a spouse or dependent child at home. Maybe you're ready to sell and move into a facility. Maybe taking out equity makes sense for your financial picture. Or maybe an undue hardship claim is the right path forward. The key is having someone in your corner who knows how to handle these hurdles and can tailor a plan to your specific circumstances.

Florida's Medicaid rules can feel overwhelming, especially when your home—the place where you've built your life—becomes part of the equation. But with the right guidance, you can protect what matters most while still getting the care you need.

Get the Help You Need

If you're anywhere in the State of Florida and facing questions about Medicaid planning, elder law, or protecting your home and assets, you don't have to figure it out alone.

Visit:

• elderneedslaw.com
• medicaidplanninglawyer.com

Get the Book: How Medicaid Can Pay for Some or All of Your Long-Term Care Expenses Available on Amazon: https://www.amazon.com/Medicaid-some-your-long-term-expenses/dp/1513634712

Set up a consultation and get answers tailored to your situation. You've worked hard for what you have—let's make sure it's protected.

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