Options for Making Rent Affordable
Rent can be expensive, and people with limited income can find it difficult to afford the usual rent in their area. When you pay rent, you also need to make sure you have enough money to pay for utilities, food, clothing, insurance, gifts, haircuts, transportation, cable and all of the other things you may need. To make rent affordable, many people will choose to take advantage of some of the ways to make rent more affordable, including participating in a rent subsidy program.
Affording Rental Housing without a Subsidy
“Naturally Occurring” Affordable Units
Sometimes there are apartments and houses that are affordable because of their location, age, or the intent of the owner. Some private owners prefer to rent their units at affordable prices because of their mission. You may be able to find these properties using www.mdhousingsearch.com, contacting your local Center for Independent Living, talking with a realtor, or looking for ads in local newspapers.
Living with a Roommate
Living with a roommate can make housing more affordable. When the housing costs are spread out between two people, the costs are about half of what they would be otherwise. When considering living with a roommate, be sure that the person is someone you can live with comfortably. Some issues to consider include:
- Are they a morning person or night owl ?
- Do they have a pet or would your pet or assistance animal bother them ?
- Would your combined income cover your expenses?
- Do they have credit challenges that would jeopardize qualifying for the apartment or paying rent every month?
- Are they a neat or messy housekeeper ?
- Do you like the same kind of TV shows or enjoy the same kind of activities ?
Always set up a meeting to interview the person in a public place, and be sure to have a trusted person with you. Think about the questions you will ask in advance. Once you have agreed to live as roommates, be sure to have a roommate agreement with rules that are clear and in writing.
Roommate Income
If you own a home and have a roommate to share expenses with, it can be more affordable. As long as your roommate does not pay more than half of the mortgage, utilities and food costs, their contribution to household expenses will not be considered income and therefore won’t affect your SSI benefits.
Renting a Room
Sometimes people will rent a room in their house to someone. Typically, the homeowner wants to get additional money to help with their housing costs. Sometimes, the homeowner prefers to have someone else in the home with them. Whatever the reason, be sure that the owner is someone you can trust and can live with. Use the advice given above when meeting someone who will rent a room in their home.
Family or Friend Financial Assistance
Family and friends can sometimes help with housing expenses. Sometimes, families will help by purchasing a home for their loved one or help by making rent or utility payments. If you have someone else helping you with housing costs and you receive SSI, be sure to understand the rules and impact on your monthly income. See section I.B. for more information on this topic.
Assistance from a Special Needs Trust
A special needs trust can also help you pay your rent and utilities. Just like getting help from family/friends, getting funds from your trust for room and board costs can also impact your SSI benefits.
What IS A RENT SUBSIDY AND HOW DOES IT WORK?
A rent subsidy program is a government program that helps qualifying people with low income afford to rent a home. The subsidy program typically pays the difference between the tenant’s portion of the rent, usually 30% of adjusted monthly household income, and the total rent for the home. The rent subsidy is paid directly to the landlord. If the household has a change in income, the tenant portion of the rent will change accordingly. Most rent subsidy programs include a utility allowance. The utility allowance is calculated by HUD and is subtracted from the tenant portion of the rent. This gives the tenant additional money to pay their utilities. The tenant MUST pay the entire utility bill when it is due.
Here is an example:
Types of Rent Subsidy Programs
There are two types of rent subsidy programs.
- Tenant-based: A tenant-based rent subsidy is attached to the person, who can shop around for a home that meets their needs and rents for a price that is within the subsidy program guidelines. The person can rent an apartment for a year and then decide to move and use their subsidy somewhere else. This type of subsidy is the most flexible and gives the most choice.
- Project-based: A project-based rent subsidy is attached to the unit or apartment. A person must qualify to live in the apartment with the subsidy. As long as the person continues to qualify and live in the unit that is subsidized, they have the benefit of the rent subsidy. However, if they decide to move, they cannot take the subsidy with them to rent another apartment.