As people get older, their needs, as well as the ability to earn and spend, can change. To accommodate these changes, seniors may have to look for housing arrangements that not only meet their lifestyle needs but also fit into their budgets. Here, opting for low-income housing options or government programs that subsidize living costs is a worthwhile option. Additionally, learning about and comparing available options could help one make an informed financial decision.
Low-cost housing options for seniors
Seniors who rely on retirement income or Social Security benefits can find low-cost living arrangements. It is important to note that the Social Security Administration does not directly offer housing assistance. Instead, certain government programs cater to those surviving on federal and state benefits and retirement income. Most seniors who receive Social Security benefits may be able to access some of the programs and housing options here.
1. Supportive housing for the elderly program
The Department of Housing and Urban Development (HUD) offers multiple programs that ease the burden of finding and affording a home, including Section 202 Supportive Housing for the Elderly Program. Additionally, HUD offers affordable public housing apartments and single-family homes to seniors based on their income. Typically, these housing options are equipped with accessibility features like ramps, bathroom handrails and shower bars, transportation services, resident activities, elevators, and cleaning services. Here, subsidized rent is offered, with recipients obligated to pay only usually just 30% of their income toward rent. For example, if one earns $1,000 a month, one would need to pay $300 for housing. Government-aided low-income senior housing may also come with other benefits, like the opportunity to find like-minded peers who would be other beneficiaries of the program.
2. Options under the housing choice voucher program
The program is the largest public housing initiative in the country. Its purpose is to provide affordable housing to those living below the poverty line. One could exchange an HCV for part of the rent at a local apartment, single-family home, or townhouse. Here, too, recipients must spend 30% of their monthly income on rent. The vouchers make up the difference between what an individual or family can pay and what the market rent is for the area. A voucher recipient can pick any local housing option that meets their needs as long as it carries a reasonable price tag and meets the Public Housing Authority’s housing quality standards. The program does not maintain a list of qualifying properties.
Another thing to note is that the voucher only costs up to a predetermined limit. For instance, if the voucher recipient lives in a home that costs over the set limit after they have paid 30% of their income toward rent, they are liable to pay the difference.
Tenant-based voucher: The government offers tenant-based housing vouchers to families of low-income seniors with minimum access to affordable, safe housing. The eligibility criteria is that the family must have household earnings of less than 50% of the area median income. A tenant-based voucher goes to a family, not the property owner. The program lets families take the voucher with them if they move and use it to pay rent at their new home.
Project-based voucher: This offers housing help to low-income, elderly, and people with disabilities who live in a housing project. A key difference here is that, unlike tenant-based vouchers that travel with the recipient, project vouchers are tied to a specific property. So, if the recipient moves out of the property after receiving a project-based voucher, they would need a new tenant-based voucher to continue receiving government housing assistance.
3. Assisted living and residential care options
Living in an assisted living facility or residential care facility is an ideal option for those who need assistance with home maintenance or activities of daily living (ADLs), like getting dressed, bathing, and using the toilet. The right living facility would also organize activities and set up meals. The average cost of an assisted living facility is about $4,000 a month (or $48,000 a year). This price will differ based on the state in which one lives. That said, one can find low-cost options that are designed to service seniors on a tight budget.
4. Adult foster care
An adult family home or adult foster care consists of up to six seniors who live together in a home-like environment. In this home, older adults are provided with assistance for daily needs, meals, and social activities. Each resident gets a personal room but shares common spaces like the living room and kitchen with others in the home. Such a home must be approved, licensed, and monitored by the local Department of Family Services. It is typically managed by paid supervisors and a team of counselors, nurses, and social workers. One should note that the housing option is for seniors who require minimal care and no specialized attention. While it may cost more than low-income senior apartments (subsidized houses), it is typically more affordable than an assisted living facility.
To begin shortlisting suitable options, seniors can also conduct a quick online search to find local housing options meant for low-income individuals or those surviving on Social Security benefits. Alternatively, seniors can speak to HUD housing counselors for more information on suitable programs and vouchers to save money on rent.
