This is my understanding as well.
I echo others who say that NPC results, run by each parent separately, may not be accurate. Does either parent have their own business, or own real estate beyond a primary home?
Household 2 will have to file CSS profile (and FAFSA if that is the custodial parent) with 2019 info, and then ask each and every FA office for professional judgment to take into account the lost income in 2020. Schools may or may not grant this professional judgment request. If granted, it might be partial, not full, relief.
Is the student applying to any FAFSA only schools?