diff --git a/changelog.d/frs-cvpay-not-property-income.fixed.md b/changelog.d/frs-cvpay-not-property-income.fixed.md
new file mode 100644
index 00000000..55546420
--- /dev/null
+++ b/changelog.d/frs-cvpay-not-property-income.fixed.md
@@ -0,0 +1 @@
+Stop counting the rent a boarder or lodger pays (FRS CVPAY) as that boarder's or lodger's own property income.
diff --git a/changelog.d/frs-property-losses-subrent.fixed.md b/changelog.d/frs-property-losses-subrent.fixed.md
new file mode 100644
index 00000000..097b15f2
--- /dev/null
+++ b/changelog.d/frs-property-losses-subrent.fixed.md
@@ -0,0 +1 @@
+Stop counting FRS property losses (ROYYR1 with RENTPROF = 2) as property income, and count rent from sub-letting part of the home (SUBRENT) for every tenure, not only owner-occupiers.
diff --git a/policyengine_uk_data/datasets/frs.py b/policyengine_uk_data/datasets/frs.py
index e440d486..c7f8e179 100644
--- a/policyengine_uk_data/datasets/frs.py
+++ b/policyengine_uk_data/datasets/frs.py
@@ -84,6 +84,8 @@
 # FRS government-training question variants use 10 or 13 for "None of these".
 FRS_APPROVED_TRAINING_CODES = tuple(range(1, 10))
 UNKNOWN_QUALIFYING_EDUCATION_OR_TRAINING_ENTRY_AGE = 1000
+# FRS RENTPROF: whether ROYYR1 is a profit (1) or a loss (2).
+FRS_RENTPROF_LOSS = 2
 
 
 @lru_cache(maxsize=None)
@@ -220,6 +222,47 @@ def derive_receives_benefits_in_own_right(pe_person: pd.DataFrame) -> pd.Series:
     )
 
 
+def frs_property_income(person: pd.DataFrame, household: pd.DataFrame) -> np.ndarray:
+    """Annual property income each person reports in the FRS.
+
+    Two FRS amounts, both weekly in the released data:
+
+    - SUBRENT, rent the household received for letting part of its home to
+      someone outside the household. The FRS asks every household (SubLet),
+      whatever its tenure, so renting and rent-free households count too. It
+      goes to the household reference person. ``household`` must be indexed
+      by ``household_id``.
+    - ROYYR1, the person's rent from other property, before tax and after
+      allowable expenses. The questionnaire cannot take a negative amount,
+      so a loss is entered as a positive amount with RENTPROF = 2 (question
+      RentProf, "Is that a profit or a loss from the property?"). A loss
+      counts as zero: it is not income, policyengine-uk has no property loss
+      input, and it is not set against the household's SUBRENT.
+
+    SUBRENT is used as reported. SUBALLOW records whether it is before (1)
+    or after (2) allowable expenses, but the FRS collects no expense amount
+    to take off the before-expenses answers.
+
+    Negative values are FRS missing-value codes (-1 to -9), not amounts, so
+    each amount is floored at zero before the two are added.
+
+    CVPAY is not included. It is the rent that a boarder or lodger pays the
+    householder, and it sits on the boarder's or lodger's own adult record.
+    The FRS question (CvPay) asks how much rent [name] paid for board and
+    lodging, after deducting any state benefits to help with rent.
+    """
+    is_head = person.hrpid == 1
+    persons_household_subrent = (
+        household.subrent.clip(lower=0).reindex(person.household_id).fillna(0).values
+    )
+    rent_from_other_property = person.royyr1.clip(lower=0).where(
+        person.rentprof != FRS_RENTPROF_LOSS, 0
+    )
+    return (
+        (is_head * persons_household_subrent + rent_from_other_property) * WEEKS_IN_YEAR
+    ).values
+
+
 def derive_is_in_non_advanced_education(
     current_education,
     is_apprentice=None,
@@ -1083,25 +1126,7 @@ def determine_education_level(fted_val, typeed2_val, age_val):
         )
         * 52,
     )
-    is_head = person.hrpid == 1
-    household_property_income = (
-        household.tentyp2.isin((5, 6)) * household.subrent
-    )  # Owned and subletting
-    persons_household_property_income = (
-        pd.Series(
-            household_property_income[person.household_id].values,
-            index=person.person_id,
-        )
-        .fillna(0)
-        .values
-    )
-    pe_person["property_income"] = (
-        np.maximum(
-            0,
-            is_head * persons_household_property_income + person.cvpay + person.royyr1,
-        )
-        * WEEKS_IN_YEAR
-    )
+    pe_person["property_income"] = frs_property_income(person, household)
     maintenance_to_self = np.maximum(
         pd.Series(np.where(person.mntus1 == 2, person.mntusam1, person.mntamt1)).fillna(
             0
diff --git a/policyengine_uk_data/tests/test_frs_property_income.py b/policyengine_uk_data/tests/test_frs_property_income.py
new file mode 100644
index 00000000..5fb2982c
--- /dev/null
+++ b/policyengine_uk_data/tests/test_frs_property_income.py
@@ -0,0 +1,301 @@
+import numpy as np
+import pandas as pd
+import pytest
+
+from policyengine_uk_data.datasets.frs import (
+    FRS_RENTPROF_LOSS,
+    WEEKS_IN_YEAR,
+    frs_property_income,
+)
+from policyengine_uk_data.datasets.frs_release import CURRENT_FRS_RELEASE
+from policyengine_uk_data.storage import STORAGE_FOLDER
+
+HRP, NOT_HRP = 1, 2
+NOT_ASKED, PROFIT, LOSS = 0, 1, FRS_RENTPROF_LOSS
+# FRS missing-value codes run from -1 to -9.
+MISSING, REFUSED = -1, -9
+OWNED_WITH_MORTGAGE, OWNED_OUTRIGHT = 5, 6
+COUNCIL_RENTED, PRIVATE_RENTED_FURNISHED = 1, 4
+TENURES = range(1, 9)
+BEFORE_EXPENSES, AFTER_EXPENSES = 1, 2
+
+
+def make_tables(people, households):
+    person = pd.DataFrame(
+        people,
+        columns=["household_id", "person_id", "hrpid", "royyr1", "rentprof", "cvpay"],
+    )
+    household = pd.DataFrame(
+        households, columns=["household_id", "tentyp2", "subrent", "suballow"]
+    ).set_index("household_id")
+    return person, household
+
+
+def test_rent_paid_by_a_lodger_is_not_their_property_income():
+    # Owner-occupier household with a lodger who pays £100 a week (CVPAY).
+    person, household = make_tables(
+        [(1, 1_001, HRP, 0, NOT_ASKED, 0), (1, 1_002, NOT_HRP, 0, NOT_ASKED, 100)],
+        [(1, OWNED_OUTRIGHT, 0, 0)],
+    )
+    assert frs_property_income(person, household).tolist() == [0, 0]
+
+
+def test_rent_from_other_property_counts_for_any_adult():
+    person, household = make_tables(
+        [(1, 1_001, HRP, 0, NOT_ASKED, 0), (1, 1_002, NOT_HRP, 50, PROFIT, 0)],
+        [(1, COUNCIL_RENTED, 0, 0)],
+    )
+    np.testing.assert_allclose(
+        frs_property_income(person, household), [0, 50 * WEEKS_IN_YEAR]
+    )
+
+
+def test_a_loss_on_other_property_is_not_income():
+    # ROYYR1 holds the size of the loss as a positive amount; RENTPROF flags it.
+    person, household = make_tables(
+        [(1, 1_001, HRP, 90, LOSS, 0), (1, 1_002, NOT_HRP, 50, PROFIT, 0)],
+        [(1, OWNED_WITH_MORTGAGE, 0, 0)],
+    )
+    np.testing.assert_allclose(
+        frs_property_income(person, household), [0, 50 * WEEKS_IN_YEAR]
+    )
+
+
+def test_a_loss_on_other_property_does_not_reduce_subletting_rent():
+    person, household = make_tables(
+        [(1, 1_001, HRP, 30, LOSS, 0)],
+        [(1, OWNED_OUTRIGHT, 80, AFTER_EXPENSES)],
+    )
+    np.testing.assert_allclose(
+        frs_property_income(person, household), [80 * WEEKS_IN_YEAR]
+    )
+
+
+def test_rent_with_no_profit_or_loss_answer_still_counts():
+    # Only an explicit loss removes the amount.
+    person, household = make_tables(
+        [(1, 1_001, HRP, 50, NOT_ASKED, 0)], [(1, OWNED_OUTRIGHT, 0, 0)]
+    )
+    np.testing.assert_allclose(
+        frs_property_income(person, household), [50 * WEEKS_IN_YEAR]
+    )
+
+
+@pytest.mark.parametrize("tenure", TENURES)
+def test_subletting_rent_goes_to_the_household_reference_person(tenure):
+    # Every tenure is asked SubLet, so renting households count too.
+    person, household = make_tables(
+        [(1, 1_001, NOT_HRP, 0, NOT_ASKED, 0), (1, 1_002, HRP, 0, NOT_ASKED, 0)],
+        [(1, tenure, 80, BEFORE_EXPENSES)],
+    )
+    np.testing.assert_allclose(
+        frs_property_income(person, household), [0, 80 * WEEKS_IN_YEAR]
+    )
+
+
+@pytest.mark.parametrize("suballow", [0, BEFORE_EXPENSES, AFTER_EXPENSES])
+def test_subletting_rent_is_used_as_reported_whatever_its_expenses_basis(suballow):
+    person, household = make_tables(
+        [(1, 1_001, HRP, 0, NOT_ASKED, 0)],
+        [(1, PRIVATE_RENTED_FURNISHED, 80, suballow)],
+    )
+    np.testing.assert_allclose(
+        frs_property_income(person, household), [80 * WEEKS_IN_YEAR]
+    )
+
+
+def test_missing_value_codes_count_as_zero():
+    # A missing code in one amount neither becomes income nor cancels the other.
+    person, household = make_tables(
+        [
+            (1, 1_001, HRP, MISSING, MISSING, 0),
+            (1, 1_002, NOT_HRP, REFUSED, MISSING, 0),
+            (2, 2_001, HRP, 50, PROFIT, 0),
+        ],
+        [(1, COUNCIL_RENTED, 10, AFTER_EXPENSES), (2, OWNED_OUTRIGHT, MISSING, 0)],
+    )
+    np.testing.assert_allclose(
+        frs_property_income(person, household),
+        [10 * WEEKS_IN_YEAR, 0, 50 * WEEKS_IN_YEAR],
+    )
+
+
+def test_adult_and_child_rows_sharing_index_labels():
+    # create_frs stacks the adult and child tables, so index labels repeat.
+    adults, household = make_tables(
+        [(1, 1_001, HRP, 20, PROFIT, 0), (2, 2_001, HRP, 40, LOSS, 60)],
+        [
+            (1, OWNED_OUTRIGHT, 80, BEFORE_EXPENSES),
+            (2, PRIVATE_RENTED_FURNISHED, 30, AFTER_EXPENSES),
+        ],
+    )
+    children, _ = make_tables([(1, 1_002, 0, 0, NOT_ASKED, 0)], [])
+    person = pd.concat([adults, children]).sort_index(kind="stable")
+    assert person.index.tolist() == [0, 0, 1]
+    np.testing.assert_allclose(
+        frs_property_income(person, household),
+        [100 * WEEKS_IN_YEAR, 0, 30 * WEEKS_IN_YEAR],
+    )
+
+
+def random_tables(seed: int):
+    """Random households of one to four adults; the first is the HRP."""
+    rng = np.random.default_rng(seed)
+    people, households = [], []
+    for household_id in range(1, rng.integers(1, 30) + 1):
+        tenure = int(rng.integers(1, 9))
+        subrent = float(rng.choice([0, MISSING, rng.uniform(0, 500)]))
+        suballow = int(rng.integers(1, 3)) if subrent > 0 else 0
+        households.append((household_id, tenure, subrent, suballow))
+        for person in range(1, rng.integers(1, 5) + 1):
+            royyr1 = float(rng.choice([0, MISSING, rng.uniform(0, 2_000)]))
+            if royyr1 > 0:
+                rentprof = int(rng.choice([PROFIT, PROFIT, LOSS]))
+            else:
+                rentprof = MISSING if royyr1 < 0 else NOT_ASKED
+            people.append(
+                (
+                    household_id,
+                    household_id * 1_000 + person,
+                    HRP if person == 1 else NOT_HRP,
+                    royyr1,
+                    rentprof,
+                    float(rng.choice([0, rng.uniform(0, 400)])),
+                )
+            )
+    return make_tables(people, households)
+
+
+def property_income_one_person_at_a_time(person, household):
+    """The same rules written as a loop, to check the vectorised helper."""
+    result = []
+    for row in person.itertuples():
+        weekly = 0.0
+        if row.rentprof != LOSS:
+            weekly += max(0.0, row.royyr1)
+        if row.hrpid == HRP and row.household_id in household.index:
+            weekly += max(0.0, household.subrent[row.household_id])
+        result.append(weekly * WEEKS_IN_YEAR)
+    return np.array(result)
+
+
+SEEDS = range(200)
+
+
+@pytest.mark.parametrize("seed", SEEDS)
+def test_property_income_matches_the_loop_version(seed):
+    person, household = random_tables(seed)
+    np.testing.assert_allclose(
+        frs_property_income(person, household),
+        property_income_one_person_at_a_time(person, household),
+    )
+
+
+@pytest.mark.parametrize("seed", SEEDS)
+def test_property_income_does_not_depend_on_cvpay_tenure_or_expenses_basis(seed):
+    person, household = random_tables(seed)
+    rng = np.random.default_rng(seed)
+    other_person = person.assign(cvpay=rng.uniform(0, 400, len(person)))
+    other_household = household.assign(
+        tentyp2=rng.integers(1, 9, len(household)),
+        suballow=rng.integers(1, 3, len(household)),
+    )
+    np.testing.assert_array_equal(
+        frs_property_income(person, household),
+        frs_property_income(other_person, other_household),
+    )
+
+
+@pytest.mark.parametrize("seed", SEEDS)
+def test_property_income_conserves_reported_rent(seed):
+    # Each household's SUBRENT is counted once (on its HRP) and every ROYYR1
+    # that is not a loss is counted on its own record, so the totals match.
+    person, household = random_tables(seed)
+    result = frs_property_income(person, household)
+    assert (result >= 0).all()
+    profits = person.royyr1.clip(lower=0)[person.rentprof != LOSS]
+    subrent = household.subrent.clip(lower=0)
+    expected = (subrent.sum() + profits.sum()) * WEEKS_IN_YEAR
+    assert result.sum() == pytest.approx(expected)
+
+
+@pytest.mark.parametrize("seed", SEEDS)
+def test_marking_rent_as_a_loss_removes_it_from_that_person_only(seed):
+    person, household = random_tables(seed)
+    before = frs_property_income(person, household)
+    row = seed % len(person)
+    was_counted = person.loc[row, "rentprof"] != LOSS
+    person.loc[row, "rentprof"] = LOSS
+    after = frs_property_income(person, household)
+    change = np.zeros(len(person))
+    change[row] = -max(0, person.loc[row, "royyr1"]) * WEEKS_IN_YEAR * was_counted
+    np.testing.assert_allclose(after - before, change, atol=1e-6)
+
+
+@pytest.mark.parametrize("seed", SEEDS)
+def test_extra_rent_from_other_property_moves_only_that_person(seed):
+    person, household = random_tables(seed)
+    before = frs_property_income(person, household)
+    row = seed % len(person)
+    person.loc[row, "royyr1"] = max(0, person.loc[row, "royyr1"]) + 10
+    after = frs_property_income(person, household)
+    change = np.zeros(len(person))
+    change[row] = 10 * WEEKS_IN_YEAR * (person.loc[row, "rentprof"] != LOSS)
+    np.testing.assert_allclose(after - before, change, atol=1e-6)
+
+
+@pytest.mark.parametrize("seed", SEEDS)
+def test_extra_subletting_rent_moves_only_that_households_reference_person(seed):
+    person, household = random_tables(seed)
+    before = frs_property_income(person, household)
+    household_id = household.index[seed % len(household)]
+    household.loc[household_id, "subrent"] = (
+        max(0, household.loc[household_id, "subrent"]) + 10
+    )
+    after = frs_property_income(person, household)
+    is_its_hrp = (person.household_id == household_id) & (person.hrpid == HRP)
+    np.testing.assert_allclose(
+        after - before, is_its_hrp * 10 * WEEKS_IN_YEAR, atol=1e-6
+    )
+
+
+def test_built_frs_matches_the_raw_tables(frs):
+    """The built base FRS against a merge-based reading of the raw tables.
+
+    Covers the call site in ``create_frs`` and the raw column names and codes.
+    The assertion carries no values, because the dataset is licensed microdata.
+    """
+    raw_folder = STORAGE_FOLDER / CURRENT_FRS_RELEASE.name
+    if not (raw_folder / "adult.tab").exists():
+        pytest.skip("Raw FRS tables not available")
+    adult = pd.read_csv(
+        raw_folder / "adult.tab",
+        sep="\t",
+        usecols=lambda c: (
+            c.upper() in ("SERNUM", "PERSON", "HRPID", "ROYYR1", "RENTPROF")
+        ),
+    )
+    househol = pd.read_csv(
+        raw_folder / "househol.tab",
+        sep="\t",
+        usecols=lambda c: c.upper() in ("SERNUM", "SUBRENT"),
+    )
+    adult.columns = adult.columns.str.upper()
+    househol.columns = househol.columns.str.upper()
+    raw = adult.merge(househol, on="SERNUM", how="left").apply(
+        pd.to_numeric, errors="coerce"
+    )
+    profit = raw.ROYYR1.clip(lower=0).where(raw.RENTPROF != 2, 0).fillna(0)
+    subrent = raw.SUBRENT.clip(lower=0).where(raw.HRPID == 1, 0).fillna(0)
+    expected = pd.Series(
+        ((profit + subrent) * WEEKS_IN_YEAR).values,
+        index=(raw.SERNUM * 1_000 + raw.PERSON).astype(int),
+    )
+    built = pd.Series(
+        frs.person.property_income.values, index=frs.person.person_id.values
+    )
+    adults_match = np.allclose(built.reindex(expected.index), expected, atol=0.01)
+    children_have_none = (built.drop(expected.index) == 0).all()
+    assert adults_match and children_have_none, (
+        "property_income in the built FRS differs from the raw FRS tables"
+    )
diff --git a/policyengine_uk_data/tests/test_legacy_benefit_proxies.py b/policyengine_uk_data/tests/test_legacy_benefit_proxies.py
index 5f1acd85..5beb95ab 100644
--- a/policyengine_uk_data/tests/test_legacy_benefit_proxies.py
+++ b/policyengine_uk_data/tests/test_legacy_benefit_proxies.py
@@ -442,6 +442,7 @@ def fake_read_csv(path, *args, **kwargs):
                 "mntus1": 0,
                 "mntusam1": 0,
                 "redamt": 0,
+                "rentprof": 0,
                 "royyr1": 0,
                 "seincam2": 0,
                 "sex": 1,