Because it’s an allowance, it is not taxed. $89,000 a year in free money.
The allowance isn’t taxed?
I find that unfair. Under IRS rules,if my employer sends me out of town, and they provide me a hotel room, then the amount of the hotel room is considered income to me, and I am taxed on it. (Even though the money never passed through my hands.) I I know this is true because I did some traveling for my job and experienced this.
Paying that much for housing sounds a bit outrageous, still.