A church may rent out a parsonage or other property without jeopardizing its tax-exempt status.

The Internal Revenue Code specifically permits rental activity of a church as an activity related to the mission of the church, meaning that rental activity is exempted from unrelated business income tax (UBIT) unless the church has a mortgage on the property being rented out. Church property should be rented out at a market rate to prevent the renter from improperly benefiting from the use and rental of church property.