Legally, there is no federal prohibition against charging a live-in nanny rent or deducting housing costs from their wages, provided that the overall compensation still meets minimum wage and overtime requirements under the Fair Labor Standards Act. However, state laws can vary significantly; some states have specific regulations regarding housing arrangements and deductions for live-in domestic workers. It is important for employers to ensure that any deductions do not reduce the nanny’s wages below the legal minimum and that the arrangement complies with local labor laws. Consulting with a legal expert or employment attorney can help clarify specific state regulations and ensure that the arrangement is lawful and fair for both parties.