diff --git a/app/models/case_log.rb b/app/models/case_log.rb
index 394dd62bf..ee325522a 100644
--- a/app/models/case_log.rb
+++ b/app/models/case_log.rb
@@ -371,6 +371,7 @@ private
     self.nocharge = household_charge&.zero? ? 1 : 0
     self.underoccupation_benefitcap = 3 if renewal == 1 && year == 2021
     self.ethnic = ethnic || ethnic_group
+    self.housingneeds = get_housingneeds
     if is_renewal?
       self.underoccupation_benefitcap = 2 if year == 2021
       self.homeless = 2
@@ -480,6 +481,19 @@ private
     end
   end
 
+  def get_housingneeds
+    if [housingneeds_a, housingneeds_b, housingneeds_c, housingneeds_f].any?(1)
+      return 1
+    end
+    if housingneeds_g == 1
+      return 2
+    end
+
+    if housingneeds_h == 1
+      3
+    end
+  end
+
   def all_fields_completed?
     mandatory_fields.none? { |field| public_send(field).nil? if respond_to?(field) }
   end
diff --git a/db/migrate/20220318140754_add_housing_needs_field.rb b/db/migrate/20220318140754_add_housing_needs_field.rb
new file mode 100644
index 000000000..79e1a36e0
--- /dev/null
+++ b/db/migrate/20220318140754_add_housing_needs_field.rb
@@ -0,0 +1,7 @@
+class AddHousingNeedsField < ActiveRecord::Migration[7.0]
+  def change
+    change_table :case_logs, bulk: true do |t|
+      t.column :housingneeds, :integer
+    end
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index 79e41a8ea..38fcc3d26 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -224,6 +224,7 @@ ActiveRecord::Schema[7.0].define(version: 202202071123100) do
     t.decimal "wsupchrg", precision: 10, scale: 2
     t.decimal "wtcharge", precision: 10, scale: 2
     t.decimal "wtshortfall", precision: 10, scale: 2
+    t.integer "housingneeds"
     t.index ["managing_organisation_id"], name: "index_case_logs_on_managing_organisation_id"
     t.index ["owning_organisation_id"], name: "index_case_logs_on_owning_organisation_id"
   end
diff --git a/spec/fixtures/exports/case_logs.xml b/spec/fixtures/exports/case_logs.xml
index bcb090842..cbd70ecd6 100644
--- a/spec/fixtures/exports/case_logs.xml
+++ b/spec/fixtures/exports/case_logs.xml
@@ -166,5 +166,6 @@
     <wsupchrg>17.5</wsupchrg>
     <wtcharge>162.5</wtcharge>
     <wtshortfall>6.0</wtshortfall>
+    <housingneeds>1</housingneeds>
   </form>
 </forms>
diff --git a/spec/models/case_log_spec.rb b/spec/models/case_log_spec.rb
index 15b50a4e9..e80e7216e 100644
--- a/spec/models/case_log_spec.rb
+++ b/spec/models/case_log_spec.rb
@@ -1366,6 +1366,33 @@ RSpec.describe CaseLog do
         expect(case_log["referral"]).to eq(0)
       end
     end
+
+    context "when the data provider is filling in household needs" do
+      let!(:case_log) do
+        described_class.create({
+          managing_organisation: organisation,
+          owning_organisation: organisation,
+        })
+      end
+
+      it "correctly derives and saves housing neeeds as 1" do
+        case_log.update!(housingneeds_a: 1)
+        record_from_db = ActiveRecord::Base.connection.execute("select housingneeds from case_logs where id=#{case_log.id}").to_a[0]
+        expect(record_from_db["housingneeds"]).to eq(1)
+      end
+
+      it "correctly derives and saves housing neeeds as 2" do
+        case_log.update!(housingneeds_g: 1)
+        record_from_db = ActiveRecord::Base.connection.execute("select housingneeds from case_logs where id=#{case_log.id}").to_a[0]
+        expect(record_from_db["housingneeds"]).to eq(2)
+      end
+
+      it "correctly derives and saves housing neeeds as 3" do
+        case_log.update!(housingneeds_h: 1)
+        record_from_db = ActiveRecord::Base.connection.execute("select housingneeds from case_logs where id=#{case_log.id}").to_a[0]
+        expect(record_from_db["housingneeds"]).to eq(3)
+      end
+    end
   end
 
   describe "resetting invalidated fields" do