<p>Absolutetly right! FAFSFA does NOT ask for primary residence values, but PROFILE and other aid apps may. </p>
<p>As for the value of a vacation home that has sky rocketed in value, that is not something I would be comfortable giving advice about. I know around here, many folks use the formula given when it is truly understating value for this area (for PROFILE home values) but how it would hold up if challenged is a whold different story. The conservative answer is to use what is a true market value, but in most cases you cannot get that answer without going through an appraisal. I believe that this is kept vague deliberately, since there is no reason why a standard method cannot be prescribed. You need to ask someone who is knowledgeable about financial aid forms. Perhaps contact the FAFSA help line and ask if the that federal calculator is adequate or if you have to go farther.</p>