I'm not sure the answers given fit your situation. Are you living in a church-provided parsonage and ALSO receiving a parsonage allowance in cash/money? If this is the case, please provide more details.
If you are living in a home you own, and are receiving a parsonage allowance to pay for your living expenses, the amount that is tax-free is your actual living expenses or the FMV, whichever is smaller. This means that you will only have a problem if the IRS for some reason thinks that the FMV is less than your actual expenses, and I can't think of many situations where that would occur. Normally you can use your actual expenses as the FMV.
