There is no tax deduction for employer provided housing for teachers. Per IRC 119(d)
Provided the teacher pays “adequate rent,” IRC §119(d) may provide the teacher a partial exclusion from income of employer-provided qualified campus housing. “Adequate rent” is defined as the lesser of 1) five percent of the fair market value of the employer-provided housing or 2) the average rental paid to the educational institution by individuals not affiliated with the institution for lodging that is comparable to that provided to the teacher. If the teacher does not pay adequate rent for the housing, he/she receives additional wage income computed by subtracting the rent paid from the amount determined to be adequate rent.
I am attaching a document that addresses this issue. see page 3 and 4 for examples.
