Previous Policy 
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After determining Food Stamp net income in accordance with Section 611.01, Computing Income Eligibility, calculate Food Stamp benefit allotments as follows:
For ongoing cases and initial cases which apply on the first day of the month
1. multiply net income by 30%;
2. if the benefit reduction value ends in cents, drop all fractions of a cent, and round all amounts between $0.01 $0.99 up to the next highest dollar;
3. subtract the result from the maximum allotment for the appropriate group size (See FSM Table F);
4. for a one or two person household, if the remainder is less than $*16, allow a $*16 minimum allotment; or
5. for all other household sizes, if the remainder is an odd figure less than $*16, such as $1, $3, etc., round the amount up to the next even dollar amount ($2, $4, etc.).
EXAMPLE 1 
A noncategorically eligible recipient household, group size of 3, has monthly net income of $1,649. The maximum net income for a group size of 3 is $1,650, so the household passes the net income test. The maximum allotment for a group size of 3 is $511. The household’s Food Stamp benefit allotment is determined as follows. 

$511 
Maximum allotment for a group size of 3 

495 
30% of net income ($494.70 rounded up to $495) 

$ 16 
Rounded up to the next even dollar if less than $**16: 

$ 16 
Household’s monthly Food Stamp allotment 
EXAMPLE 2 
A categorically eligible recipient household via receipt of SSI, group size of 2, has monthly net income of $1,180. The maximum net income for a group size of 2 is $1,311, but gross and net income limits do not apply to this category of categorically eligible household. The maximum allotment for a group size of 2 is $357. The household’s Food Stamp benefit allotment is determined as follows. 

$ 357 
Maximum allotment for a group size of 2 

354 
30% of net income ($354) 

$ 3

Subtraction results in a figure that is less than the minimum allotment for a 1 or 2person household, so it is rounded up to equal the minimum allotment: 

$ *16 
Household’s monthly Food Stamp allotment 
For untimely reapplications and initial applications after the first of the month
Benefits must be prorated if the household applies for Food Stamp benefits on any day other than the first day of the month or if reapplication is untimely (See Section 161.09, Untimely Reapplication). If the proration results in benefits of less than $*16, no benefits are issued to households of any group size, including one and two person households.
Calculate prorated benefits as follows:
1. determine the household’s monthly Food Stamp allotment prior to proration, as if the household had applied on the first of the month;
2. add 1 to the number of days in the month;
3. subtract the application date from the result of Step 2. This is the number of days that the assistance group is eligible to receive Food Stamp benefits;
4. multiply the number of days in Step 2 by the allotment prior to proration as determined in Step 1; and
5. divide this figure by the number of days in the month. This is the prorated benefit.
EXAMPLE 1 
A household of 1 applies on June 6th, and the monthly allotment prior to proration (Step 1 above) is $111. 
1. 
add 1 to 30 (the number of days in June) = 
31 
2. 
31 (days in month plus 1) minus 6 (application date) = 
25 
3. 
25 times 111 (the allotment prior to proration) = 
2,775 
4. 
2,775 divided by 30 (the number of days in June) = 
92.5, rounded down to: 
$92.00 is the household’s prorated June benefit 
EXAMPLE 2 
A household, group size of 2, applies for initial benefits on September 25th, and their monthly allotment prior to proration (Step 1 above) is $40. 
1. 
add 1 to 30 (the number of days in September) = 
31 
2. 
31 (days in month plus 1) minus 25 (application date) = 
6 
3. 
6 times 40 (the allotment prior to proration) = 
240 
4. 
240 divided by 30 (the number of days in September) 
8 
No benefits are issued for the initial month, because the prorated allotment is less than $*16 
References: 7 CFR 273.9(a), 7 CFR 273.10, 7 USC 2012(b), 7 USC 2014, 7 USC 2017