You should be filling out something often called a housing questionnaire. That helps the travel company make their own determination on whether you qualify for tax free housing and benefits such as per diem and travel. That determination is not necessarily accurate if you are audited by the IRS, so this may be from an enlightened agency that is saying, hey, if you know you are not qualified, you can opt out of tax free benefits. I doubt they would allow you to opt in with a negative housing form. But simply, if you maintain a tax home and are working away temporarily and require housing, yes, put "tax-exempt" for that question. You can also ask your recruiter for what that question means to them, but that is my best guess.