Housing is likely your biggest expense, and if you're receiving disability benefits, you may be wondering whether you can use those funds for rent or mortgage payments—and what assistance programs might help stretch your benefits further.
In this article, we'll cover:
- Using SSDI and SSI benefits for housing expenses
- Housing assistance programs available to people with disabilities
- Section 8 and Housing Choice Vouchers explained
- How living arrangements affect your SSI benefits
- Using ABLE accounts for housing costs
Yes, You Can Use Benefits for Housing
Both SSDI and SSI benefits can be used for any expenses you choose, including rent, mortgage payments, utilities, and other housing costs. There are no restrictions on using your disability benefits to pay for housing.
The challenge isn't whether you're allowed to use benefits for housing—it's whether your benefits are enough to cover housing costs in your area. With the average SSI payment around $698 and the maximum at $967, finding affordable housing on disability benefits alone is extremely difficult in most markets.
Housing Assistance Programs for People With Disabilities
Several programs specifically help people with disabilities afford housing:
Section 811 Supportive Housing provides affordable housing options specifically for people with disabilities. These units are either project-based (you live in a designated building) or tenant-based (you receive a voucher to use at participating properties).
HUD Section 8 Housing Choice Vouchers help low-income individuals, including many people with disabilities, afford private rental housing. You pay about 30% of your income toward rent, and the voucher covers the rest up to a limit.
Public Housing operated by local housing authorities often prioritizes people with disabilities. Wait lists can be long, but rent is typically capped at 30% of your income.
USDA Rural Housing programs offer options for people in rural areas, including loans and rental assistance.
How to Apply for Housing Assistance
Contact your local Public Housing Authority (PHA) to learn about available programs and get on waiting lists. Many areas have years-long waits for housing vouchers, so apply as early as possible—even if you don't need assistance immediately.
Gather documentation including proof of your disability (your SSA award letter works), income verification, and identification. Be prepared to update your application periodically, as many PHAs remove people from waiting lists who don't respond to check-ins.
Living Arrangements and SSI
If you receive SSI, your living situation directly affects your benefits. SSI assumes that living costs include food and shelter—if someone else pays these costs for you, your benefit may be reduced by up to one-third.
This "in-kind support and maintenance" rule means that if you live rent-free with family or someone else pays your rent, SSA may reduce your SSI payment. Understanding this rule helps you make informed decisions about living arrangements.
Sharing housing with a roommate and splitting costs equally typically doesn't reduce your benefits, as long as you're paying your fair share.
ABLE Accounts and Housing
If you have an ABLE account, housing is a qualified expense. You can use ABLE funds for rent, mortgage payments, property taxes, utilities, and home modifications. This gives you flexibility to save for housing costs or cover expenses during transitions.
For SSI recipients, using ABLE funds for housing doesn't trigger the in-kind support reduction—it's considered your own money being spent on your own housing.
Managing housing costs on disability is challenging. Purple helps you track your benefits and resources with a checking account designed for SSI and SSDI recipients.