diff --git a/changelog.d/frs-non-dependant-residence.added.md b/changelog.d/frs-non-dependant-residence.added.md
new file mode 100644
index 00000000..c8c6ec9c
--- /dev/null
+++ b/changelog.d/frs-non-dependant-residence.added.md
@@ -0,0 +1 @@
+Say which joint occupiers each FRS non-dependant family normally resides with (non_dependant_normally_resides_with), from the household relationship grid: a family related to exactly one joint occupier's family resides with that family only, so policyengine-uk counts it in that tenant's Housing Benefit size criteria and deducts it from that tenant alone.
diff --git a/policyengine_uk_data/datasets/frs.py b/policyengine_uk_data/datasets/frs.py
index 3309d807..6fce159b 100644
--- a/policyengine_uk_data/datasets/frs.py
+++ b/policyengine_uk_data/datasets/frs.py
@@ -306,6 +306,104 @@ def frs_liable_for_share_of_household_rent(
     return (unit_number > 1) & shared & ((srent > 0) | (hb > 0))
 
 
+# The FRS household grid: R01-R14 on each adult and child record give how the
+# person is related to persons 1-14 of the household ("this person is <code>
+# of person k"; a child's code for the household reference person is 3,
+# son/daughter). Every code but 18, "other non-relative", ties the two as
+# family: partners (1 spouse, 2 cohabitee, 20 civil partner), relatives by
+# blood, adoption or marriage (3-4, 6-8, 10-12, 14-17) and foster relations
+# (5, 9, 13).
+HOUSEHOLD_GRID_COLUMNS = [f"r{k:02d}" for k in range(1, 15)]
+FAMILY_RELATIONSHIP_CODES = (*range(1, 18), 20)
+
+
+def frs_non_dependant_normally_resides_with(
+    benunit: pd.DataFrame, person: pd.DataFrame, liable: np.ndarray
+) -> np.ndarray:
+    """Which joint occupiers each family of non-dependants normally resides with.
+
+    In a household whose rent is shared (``liable``, from
+    frs_liable_for_share_of_household_rent), the joint occupiers are the
+    household reference person's family and the sharers, and every other
+    family is a family of non-dependants. For Housing Benefit and Council Tax
+    Reduction a non-dependant belongs to each joint occupier they normally
+    reside with. The DWP's LHA Guidance Manual (April 2014) counts a friend
+    of two joint tenants in each one's size criteria (para 2.110) and a
+    joint tenant's sister as that tenant's non-dependant only (para 2.093,
+    example 2). Whether people reside with each other turns on the
+    relationship between them and whether they share the accommodation as one
+    household (JP v Bournemouth BC [2018] AACR 30, para 34).
+
+    A family of non-dependants with a member related (FAMILY_RELATIONSHIP_CODES)
+    to members of exactly one joint occupier's family normally resides with
+    that family only: HOUSEHOLD_HEAD_FAMILY when it is the reference person's,
+    OTHER_JOINT_OCCUPIERS when it is the household's only sharer. Every other
+    family keeps EVERY_JOINT_OCCUPIER, policyengine-uk's default. That covers
+    friends of the household, a family related to more than one joint
+    occupier, the relative of one sharer among several (a case the input
+    cannot single out), and every family of a household with no sharer. A tie
+    on either person's record counts, because the two records disagree for a
+    few pairs (0.25% of related ordered pairs in the 2023-24 FRS). The grid
+    covers the first 14 people of a household.
+    """
+    benunit_ids = benunit.benunit_id.values
+    household_ids = benunit.household_id.values
+    head_family = (
+        pd.Series(person.hrpid.values == 1)
+        .groupby(person.benunit_id.values)
+        .any()
+        .reindex(benunit_ids, fill_value=False)
+        .values
+    )
+    sharer = np.asarray(liable, dtype=bool) & ~head_family
+    sharers_in_household = (
+        pd.Series(sharer).groupby(household_ids).transform("sum").values
+    )
+    non_dependant = ~head_family & ~sharer & (sharers_in_household > 0)
+
+    # Benefit unit pairs tied by a family relationship on either record.
+    grid = person.reindex(columns=HOUSEHOLD_GRID_COLUMNS).fillna(0).values
+    rows, columns = np.nonzero(np.isin(grid, FAMILY_RELATIONSHIP_CODES))
+    benunit_of_person = pd.Series(
+        person.benunit_id.values,
+        index=pd.MultiIndex.from_arrays(
+            [person.household_id.values, person.person_id.values % 1000]
+        ),
+    )
+    ties = pd.DataFrame(
+        {
+            "benunit_id": person.benunit_id.values[rows],
+            "other": benunit_of_person.reindex(
+                pd.MultiIndex.from_arrays(
+                    [person.household_id.values[rows], columns + 1]
+                )
+            ).values,
+        }
+    ).dropna()
+    ties = pd.concat(
+        [ties, ties.rename(columns={"benunit_id": "other", "other": "benunit_id"})]
+    ).astype(int)
+    ties = ties[ties.benunit_id != ties.other].drop_duplicates()
+
+    role = pd.Series(
+        np.select([head_family, sharer], ["head", "sharer"], "other"),
+        index=benunit_ids,
+    )
+    ties = ties[
+        role.reindex(ties.benunit_id).isin(["other"]).values
+        & role.reindex(ties.other).isin(["head", "sharer"]).values
+    ]
+    tied = ties.groupby("benunit_id").other.agg(["nunique", "first"])
+    only_tie = tied.loc[tied["nunique"] == 1, "first"].reindex(benunit_ids)
+    only_tie_role = role.reindex(only_tie.values).values
+    resides_with = np.full(len(benunit_ids), "EVERY_JOINT_OCCUPIER", dtype=object)
+    resides_with[non_dependant & (only_tie_role == "head")] = "HOUSEHOLD_HEAD_FAMILY"
+    resides_with[
+        non_dependant & (only_tie_role == "sharer") & (sharers_in_household == 1)
+    ] = "OTHER_JOINT_OCCUPIERS"
+    return resides_with
+
+
 def derive_is_in_non_advanced_education(
     current_education,
     is_apprentice=None,
@@ -1354,6 +1452,11 @@ def determine_education_level(fted_val, typeed2_val, age_val):
     pe_benunit["liable_for_share_of_household_rent"] = (
         frs_liable_for_share_of_household_rent(benunit, person, household)
     )
+    pe_benunit["non_dependant_normally_resides_with"] = (
+        frs_non_dependant_normally_resides_with(
+            benunit, person, pe_benunit.liable_for_share_of_household_rent.values
+        )
+    )
     pe_household["mortgage_interest_repayment"] = (
         household.mortint.fillna(0).values * WEEKS_IN_YEAR
     )
diff --git a/policyengine_uk_data/tests/test_frs_non_dependant_residence.py b/policyengine_uk_data/tests/test_frs_non_dependant_residence.py
new file mode 100644
index 00000000..18f43fa7
--- /dev/null
+++ b/policyengine_uk_data/tests/test_frs_non_dependant_residence.py
@@ -0,0 +1,285 @@
+import numpy as np
+import pandas as pd
+from hypothesis import given, settings, strategies as st
+
+from policyengine_uk_data.datasets.frs import frs_non_dependant_normally_resides_with
+
+EVERY, HEAD, OTHERS = (
+    "EVERY_JOINT_OCCUPIER",
+    "HOUSEHOLD_HEAD_FAMILY",
+    "OTHER_JOINT_OCCUPIERS",
+)
+# FRS 2024-25 adult and child data dictionaries, R01-R14.
+SISTER, SON, PARENT, GRANDCHILD, NON_RELATIVE = 11, 3, 7, 15, 18
+RELATED = {*range(1, 18), 20}
+GRID = [f"r{k:02d}" for k in range(1, 15)]
+
+
+def frames(households):
+    """Build FRS-style benunit and person frames.
+
+    ``households`` maps a household id to a list of benefit units, each a
+    list of people as dicts with optional ``hrp`` and ``codes`` (person
+    number in the household -> relationship code). People are numbered 1, 2,
+    ... across the household in the order given.
+    """
+    benunits, people = [], []
+    for household_id, units in households.items():
+        number = 0
+        for unit, members in enumerate(units, start=1):
+            benunit_id = household_id * 100 + unit
+            benunits.append((benunit_id, household_id))
+            for member in members:
+                number += 1
+                row = {
+                    "person_id": household_id * 1000 + number,
+                    "benunit_id": benunit_id,
+                    "household_id": household_id,
+                    "hrpid": int(member.get("hrp", False)),
+                }
+                row.update({column: 0 for column in GRID})
+                for other, code in member.get("codes", {}).items():
+                    if other <= 14:
+                        row[f"r{other:02d}"] = code
+                people.append(row)
+    benunit = pd.DataFrame(benunits, columns=["benunit_id", "household_id"])
+    return benunit, pd.DataFrame(people)
+
+
+def resides(households, liable):
+    benunit, person = frames(households)
+    return frs_non_dependant_normally_resides_with(
+        benunit, person, np.array(liable)
+    ).tolist()
+
+
+def test_a_joint_tenants_sister_resides_with_that_tenant_only():
+    # LHA Guidance Manual 2.093, example 2: Sarah (the reference person) and
+    # Rachel are joint tenants; Susan, Sarah's sister, is Sarah's non-dependant.
+    sarah = {"hrp": True, "codes": {2: NON_RELATIVE, 3: SISTER}}
+    rachel = {"codes": {1: NON_RELATIVE, 3: NON_RELATIVE}}
+    susan = {"codes": {1: SISTER, 2: NON_RELATIVE}}
+    assert resides({1: [[sarah], [rachel], [susan]]}, [False, True, False]) == [
+        EVERY,
+        EVERY,
+        HEAD,
+    ]
+
+
+def test_a_sharers_sister_resides_with_the_sharer_only():
+    head = {"hrp": True, "codes": {2: NON_RELATIVE, 3: NON_RELATIVE}}
+    sharer = {"codes": {1: NON_RELATIVE, 3: SISTER}}
+    sister = {"codes": {1: NON_RELATIVE, 2: SISTER}}
+    assert resides({1: [[head], [sharer], [sister]]}, [False, True, False]) == [
+        EVERY,
+        EVERY,
+        OTHERS,
+    ]
+
+
+def test_a_friend_of_the_joint_tenants_is_shared():
+    # LHA Guidance Manual 2.110: Peter, a friend of joint tenants John and
+    # Alex, is counted in each one's size criteria.
+    john = {"hrp": True, "codes": {2: NON_RELATIVE, 3: NON_RELATIVE}}
+    alex = {"codes": {1: NON_RELATIVE, 3: NON_RELATIVE}}
+    peter = {"codes": {1: NON_RELATIVE, 2: NON_RELATIVE}}
+    assert resides({1: [[john], [alex], [peter]]}, [False, True, False]) == [EVERY] * 3
+
+
+def test_a_relative_of_one_sharer_among_several_keeps_the_default():
+    # OTHER_JOINT_OCCUPIERS would mean both sharers, so it cannot be used.
+    head = {"hrp": True}
+    sharer = {"codes": {4: SISTER}}
+    other_sharer = {}
+    sister = {"codes": {2: SISTER}}
+    households = {1: [[head], [sharer], [other_sharer], [sister]]}
+    assert resides(households, [False, True, True, False]) == [EVERY] * 4
+
+
+def test_a_relative_of_two_joint_occupiers_is_shared():
+    # The reference person and the sharer are siblings; the non-dependant is
+    # one's son and so the other's nephew.
+    head = {"hrp": True, "codes": {2: SISTER, 3: PARENT}}
+    sharer = {"codes": {1: SISTER, 3: 17}}
+    son = {"codes": {1: SON, 2: 17}}
+    assert resides({1: [[head], [sharer], [son]]}, [False, True, False]) == [EVERY] * 3
+
+
+def test_households_without_a_sharer_keep_the_default():
+    head = {"hrp": True, "codes": {2: PARENT}}
+    adult_son = {"codes": {1: SON}}
+    assert resides({1: [[head], [adult_son]]}, [False, False]) == [EVERY] * 2
+
+
+def test_a_tie_on_either_record_counts():
+    # Only the joint tenant's record says they are related.
+    sarah = {"hrp": True, "codes": {3: SISTER}}
+    rachel = {}
+    susan = {"codes": {1: NON_RELATIVE}}
+    assert resides({1: [[sarah], [rachel], [susan]]}, [False, True, False]) == [
+        EVERY,
+        EVERY,
+        HEAD,
+    ]
+
+
+def test_any_member_of_the_family_can_carry_the_tie():
+    # A lodger-like friend whose child is the reference person's grandchild.
+    head = {"hrp": True}
+    sharer = {}
+    friend = {"codes": {1: NON_RELATIVE, 2: NON_RELATIVE}}
+    grandchild = {"codes": {1: GRANDCHILD, 2: NON_RELATIVE, 3: SON}}
+    households = {1: [[head], [sharer], [friend, grandchild]]}
+    assert resides(households, [False, True, False]) == [EVERY, EVERY, HEAD]
+
+
+def test_codes_for_people_outside_the_household_are_ignored():
+    head = {"hrp": True}
+    sharer = {}
+    visitor_code = {"codes": {9: SISTER}}
+    households = {1: [[head], [sharer], [visitor_code]]}
+    assert resides(households, [False, True, False]) == [EVERY] * 3
+
+
+def test_households_do_not_leak():
+    sarah = {"hrp": True, "codes": {3: SISTER}}
+    susan = {"codes": {1: SISTER}}
+    households = {
+        1: [[sarah], [{}], [susan]],
+        2: [[{"hrp": True}], [{}], [{}]],
+    }
+    assert resides(households, [False, True, False, False, True, False]) == [
+        EVERY,
+        EVERY,
+        HEAD,
+        EVERY,
+        EVERY,
+        EVERY,
+    ]
+
+
+# Properties over generated households.
+
+CODES = st.sampled_from([0, -1, np.nan, *sorted(RELATED), NON_RELATIVE])
+
+
+@st.composite
+def survey(draw):
+    """Households of up to five benefit units and 20 people, one reference
+    person each, random liability flags and random (possibly one-sided)
+    relationship codes."""
+    households, liable = {}, []
+    for household_id in range(1, draw(st.integers(1, 4)) + 1):
+        sizes = draw(st.lists(st.integers(1, 4), min_size=1, max_size=5))
+        size = sum(sizes)
+        hrp = draw(st.integers(1, size))
+        units, number = [], 0
+        for unit_size in sizes:
+            members = []
+            for _ in range(unit_size):
+                number += 1
+                # Codes may point at absent people and beyond the grid's 14.
+                others = [k for k in range(1, 17) if k != number]
+                codes = draw(st.dictionaries(st.sampled_from(others), CODES))
+                members.append({"hrp": number == hrp, "codes": codes})
+            units.append(members)
+        households[household_id] = units
+        liable += draw(
+            st.lists(st.booleans(), min_size=len(units), max_size=len(units))
+        )
+    return households, liable
+
+
+def reference(households, liable):
+    """The rule, one family at a time."""
+    out, position = [], 0
+    for units in households.values():
+        numbered, number = [], 0
+        for members in units:
+            numbered.append([(number + i + 1, m) for i, m in enumerate(members)])
+            number += len(members)
+        head = [any(m.get("hrp") for _, m in u) for u in numbered]
+        flags = liable[position : position + len(units)]
+        position += len(units)
+        sharer = [f and not h for f, h in zip(flags, head)]
+        joint = [h or s for h, s in zip(head, sharer)]
+
+        def related(a, b):
+            for k, m in numbered[a]:
+                for j, o in numbered[b]:
+                    if m.get("codes", {}).get(j) in RELATED and j <= 14:
+                        return True
+                    if o.get("codes", {}).get(k) in RELATED and k <= 14:
+                        return True
+            return False
+
+        for u in range(len(units)):
+            value = EVERY
+            if not joint[u] and any(sharer):
+                tied = [v for v in range(len(units)) if joint[v] and related(u, v)]
+                if len(tied) == 1 and head[tied[0]]:
+                    value = HEAD
+                elif len(tied) == 1 and sum(sharer) == 1:
+                    value = OTHERS
+            out.append(value)
+    return out
+
+
+@settings(max_examples=300, deadline=None)
+@given(survey())
+def test_matches_the_rule_applied_family_by_family(case):
+    households, liable = case
+    assert resides(households, liable) == reference(households, liable)
+
+
+@settings(max_examples=200, deadline=None)
+@given(survey())
+def test_only_non_dependants_of_households_with_a_sharer_move(case):
+    households, liable = case
+    benunit, person = frames(households)
+    result = frs_non_dependant_normally_resides_with(benunit, person, np.array(liable))
+    head = benunit.benunit_id.isin(person[person.hrpid == 1].benunit_id).values
+    sharer = np.array(liable) & ~head
+    has_sharer = pd.Series(sharer).groupby(benunit.household_id.values).transform("any")
+    moved = result != EVERY
+    assert not moved[head | sharer | ~has_sharer.values].any()
+    assert not (
+        (result == OTHERS)
+        & (pd.Series(sharer).groupby(benunit.household_id.values).transform("sum") != 1)
+    ).any()
+
+
+@settings(max_examples=200, deadline=None)
+@given(survey(), st.randoms(use_true_random=False))
+def test_row_order_does_not_matter(case, random):
+    households, liable = case
+    benunit, person = frames(households)
+    expected = frs_non_dependant_normally_resides_with(
+        benunit, person, np.array(liable)
+    )
+    order = list(range(len(benunit)))
+    random.shuffle(order)
+    people = list(range(len(person)))
+    random.shuffle(people)
+    shuffled = frs_non_dependant_normally_resides_with(
+        benunit.iloc[order].reset_index(drop=True),
+        person.iloc[people].reset_index(drop=True),
+        np.array(liable)[order],
+    )
+    assert shuffled.tolist() == expected[order].tolist()
+
+
+@settings(max_examples=200, deadline=None)
+@given(survey(), st.sampled_from([0, -1, np.nan]))
+def test_non_relatives_and_missing_codes_are_interchangeable(case, blank):
+    households, liable = case
+    benunit, person = frames(households)
+    expected = frs_non_dependant_normally_resides_with(
+        benunit, person, np.array(liable)
+    )
+    grid = person[GRID]
+    person[GRID] = grid.where(grid.isin(RELATED), blank)
+    assert (
+        frs_non_dependant_normally_resides_with(benunit, person, np.array(liable))
+        == expected
+    ).all()
diff --git a/pyproject.toml b/pyproject.toml
index beff7f1a..58de5b1d 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -38,6 +38,7 @@ dependencies = [
 dev = [
     "ruff>=0.9.0",
     "pytest",
+    "hypothesis",
     "torch",
     "l0-python>=0.4.0",
     "tables",
diff --git a/uv.lock b/uv.lock
index a3e9f44d..c301c6c9 100644
--- a/uv.lock
+++ b/uv.lock
@@ -577,6 +577,75 @@ wheels = [
     { url = "https://files.pythonhosted.org/packages/35/f4/124858007ddf3c61e9b144107304c9152fa80b5b6c168da07d86fe583cc1/huggingface_hub-1.1.5-py3-none-any.whl", hash = "sha256:e88ecc129011f37b868586bbcfae6c56868cae80cd56a79d61575426a3aa0d7d", size = 516000, upload-time = "2025-11-20T15:49:30.926Z" },
 ]
 
+[[package]]
+name = "hypothesis"
+version = "6.168.3"
+source = { registry = "https://pypi.org/simple" }
+dependencies = [
+    { name = "sortedcontainers" },
+]
+sdist = { url = "https://files.pythonhosted.org/packages/09/b7/13118bbc45d6d8b9d04e2de779e2a4ff23145ea39efa692b994fb874ca72/hypothesis-6.168.3.tar.gz", hash = "sha256:a43388f9067678fef6e13bdff325b6cfa6961a590498bb37f7ff31589c83bc75", size = 511022, upload-time = "2026-09-28T05:20:58.499Z" }
+wheels = [
+    { url = "https://files.pythonhosted.org/packages/2b/cd/746a2fc1e5e5ba34f07ea6ee1ad07525a3dde5ff4836db3a7980af49a891/hypothesis-6.168.3-cp310-abi3-macosx_10_12_x86_64.whl", hash = "sha256:d20972ca134e652e9928ecd200966a8a2857adc2812c1d74b12a872e5cd503eb", size = 791536, upload-time = "2026-09-28T05:18:57.162Z" },
+    { url = "https://files.pythonhosted.org/packages/c3/0f/7a158e377b69556c8e12c25c8fd811d0103e54c24a12dab1f3b9819f202e/hypothesis-6.168.3-cp310-abi3-macosx_11_0_arm64.whl", hash = "sha256:eafbec09d3e87d13d8242411d1f5868b5e879f1bd6d95e233e9ff80c527bea1c", size = 787313, upload-time = "2026-09-28T05:20:18.122Z" },
+    { url = "https://files.pythonhosted.org/packages/45/c6/7df9104ee359e8fcd77791781c47e70794964ca69673665e0de2a6590f4c/hypothesis-6.168.3-cp310-abi3-manylinux_2_17_aarch64.manylinux2014_aarch64.whl", hash = "sha256:73c5627497968cc62d140e9fde1ea21e12cac7b64dc419fea8286cd34ff1ad4e", size = 1124036, upload-time = "2026-09-28T05:20:04.372Z" },
+    { url = "https://files.pythonhosted.org/packages/92/0f/8a61715404a73b9a82cb1f976803428d603cdea976a9c30266c72ad6a7ce/hypothesis-6.168.3-cp310-abi3-manylinux_2_17_armv7l.manylinux2014_armv7l.whl", hash = "sha256:29dc56e6dc6eeb0aeb08ac463f847279bde2336c4786faf7ee0af4b93cd031a7", size = 1147875, upload-time = "2026-09-28T05:19:15.495Z" },
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+
 [[package]]
 name = "idna"
 version = "3.11"
@@ -1364,7 +1433,7 @@ wheels = [
 
 [[package]]
 name = "policyengine-uk-data"
-version = "1.56.16"
+version = "1.57.4"
 source = { editable = "." }
 dependencies = [
     { name = "google-auth" },
@@ -1392,6 +1461,7 @@ dependencies = [
 dev = [
     { name = "build" },
     { name = "furo" },
+    { name = "hypothesis" },
     { name = "itables" },
     { name = "l0-python" },
     { name = "pytest" },
@@ -1410,6 +1480,7 @@ requires-dist = [
     { name = "google-auth" },
     { name = "google-cloud-storage" },
     { name = "huggingface-hub" },
+    { name = "hypothesis", marker = "extra == 'dev'" },
     { name = "itables", marker = "extra == 'dev'" },
     { name = "l0-python", marker = "extra == 'dev'", specifier = ">=0.4.0" },
     { name = "microcalibrate", specifier = ">=0.18.0" },