Is it permissible for the landlord to give his zakat in the form of free housing to the poor tenant, with the intention of deducting the value of this benefit from the amount of zakat due from him?

If a tenant does not possess the rent for a dwelling, he is poor, and it is permissible to give him Zakat in cash. There is no harm in him paying this same money to the landlord as rent. However, giving Zakat as a benefit, such as housing a poor person in a dwelling with the intention of it being Zakat, is not permissible according to the four madhhabs. This is because a benefit is not a quantifiable asset that can be owned. The majority of scholars held that it is not permissible to give the value (of an item) in Zakat, whereas the Hanafis permitted it. Sheikh al-Islam Ibn Taymiyyah held that it is permissible to give the value for a [realized] benefit, but the permissibility of giving a benefit [itself] is not apparent, because Zakat is an "إيتاء" (giving/bestowal), and this is achieved by giving cash and tangible assets, not benefits.