The answer is yes. However you must be mindful that if rented the home is typically no longer an exempt resource. Any income, after expenses, must go to the cost of their care. In any event, make sure the home is titled properly as to avoid probate and therefore Medicaid estate recovery at their demise. What a pain that would be, especially if it is the only asset! If you are in Florida and would like more information please visit www.RalphRobbins.com
I think you need to ask the Medicaid people since each state is different. It makes a lot of sense, if they will be able to return home. But not all the rules make sense to those of us caring for our loved ones the best we can. Good luck and please report back on what you learn. The main thing is you want to protect yourself and your parents from any infringement on Medicaid rules. Carol
Carol