The Economic Consequences of Homelessness in The US

opportunities for people experiencing homelessness. Policies aimed at ending and
preventing homelessness should prioritize use of the Housing First model given its
positive housing, health, and economic outcomes.
Housing subsidies, including housing choice vouchers: More than 5.1 million lowincome
households in the United States receive federal rental assistance so that they
can afford housing, with funds directed to elderly citizens, people with disabilities,
veterans, and working families. Federal rental assistance is delivered through a number
of programs, including public housing, Section 8 project-based housing, U.S.
Department of Agriculture initiatives, and the HCV program. The HCV program serves
the largest number of households, 2.1 million, and allows very-low-income families,
individuals with disabilities, and the elderly to choose safe, affordable housing in the
private market. Public housing agencies (PHAs) receive HUD funding to administer the
program and pay a subsidy directly to a landlord on behalf of the family; the family is
responsible for the cost difference between the actual rent of the property and the
subsidized amount, which is typically 30% of the family’s monthly adjusted income.
Federal rental assistance allows individuals and families to exit homelessness and
greatly reduces housing instability and overcrowding. In addition, research into the
effects of vouchers on families with children indicates that voucher use cuts foster care
placements in half (as children are not removed from homes due to housing instability)
and greatly reduces the number of moves from one school to another, which in turn
improves academic performance and reduces behavioral and attention problems. By
spending less on rent, families are also better able to meet food and other basic needs
such as transportation, educational support for children, and health care. In HUD’s
Family Options Study, which evaluated the effectiveness of various types of housing
support for homeless families, researchers found substantial long-term benefits from the
use of permanent supportive housing subsidies. Families who received priority access
to these subsidies reduced their housing instability by more than half, as evidenced by
reductions in subsequent stays in shelters and places not meant for human habitation.
They also showed improvements in multiple measures of adult and child well-being and
reduced their food insecurity.
Permanent supportive housing: Permanent supportive housing is a combination of safe,
stable housing and supportive services for individuals who have serious mental
illnesses or other disabling conditions and who need additional services to remain stably
housed. It is recognized by the Substance Abuse and Mental Health Services
Administration, HUD, and the U.S. Interagency Council on Homelessness as an
evidence-based practice for chronically homeless individuals or those with complex
health needs. Through this model, individuals receive flexible support based on their
choices and needs, which can include case management, substance abuse or mental
health counseling, assistance in increasing their income through employment or
disability benefits, training in independent living skills, vocational services, and other
tenancy support services. These supportive services are a critical part of improving
housing stability outcomes in permanent housing programs. An example of a federal
permanent supportive housing initiative is the HUD-VASH (Veteran Affairs Supportive
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