Funds in 529 accounts can be withdrawn tax-free for off-campus housing. But there are some limitations. First, the college student must be enrolled at least half-time. Also, you can’t claim more than the room-and-board allowance that the college includes in the cost of attendance for federal financial aid purposes. You should be able to get this figure from the school’s website or financial aid office. Note that food and routine utilities also count, as long as the total living costs, including rent, fall within the room-and-board allowance determined by the school.