How to find low-income assisted living on a fixed budget

If you’re helping an older adult plan for retirement, the rising cost of senior living and related care services may be a major concern. Data cited in this article shows that the average cost of assisted living in 2020 was $3,931. For an older adult living on a fixed income, that amount could be prohibitively expensive and make financial planning for future care more difficult.

As assisted living costs continue to rise, finding low-income options may be essential to helping your loved one receive the care they need while staying within their budget. If they depend on a fixed income, navigating affordable senior care options, financial assistance programs, and different eligibility requirements can feel daunting.

Most assisted living communities offer a range of services that can make daily life easier for older adults, but those services often come with a steep price. With the right information, tools, and resources, however, you may be able to find a suitable and affordable assisted living community for your loved one, even on a tight budget.

Understanding the available housing and assistance programs is a helpful place to begin. Let’s start with the basics.

What does “low income” mean for older adults?

The U.S. Department of Housing and Urban Development (HUD) sets dollar amount limits that define “low income” and “very low income.” These income limits help determine whether applicants are eligible for Public Housing, Section 8, and other programs serving older adults and other people with low incomes.

The limits depend partly on family size and the area where you live because the cost of living varies widely across the country. Larger families may have a higher income and still qualify as low income or very low income, depending on where they live and the median family income for that area.

“Low income” means a family income that is 80% of the median family income for the area.

“Very low income” means a family income that is 50% of the median family income for the area.

What median income means

For example, if the median salary in an older adult’s home county is $43,000, they would need an income of $34,400, or 80% of the median, to qualify as low income. An income of $21,500, or 50% of the median, would qualify as very low income.

When HUD and other government agencies evaluate income eligibility, they consider all income streams. These may include retirement accounts, real estate, IRAs, insurance annuities, Social Security, and pensions.

The median is the value separating the higher half from the lower half of a data set. You can think of it as the halfway point, or middle value, in a range of numbers. It can provide a more accurate way to set income standards than an average, which may skew very high in some areas and very low in others.

Types of low-income assisted living and senior housing

Senior housing generally falls into two broad categories: housing with supportive or personal care services and housing without those services. Understanding that distinction can help you focus on options that match your loved one’s care needs.

Senior apartments

These apartment living options may provide affordable housing and a sense of community for older adults. Senior apartments are typically designed for people who can still live independently. They may offer social opportunities and freedom from responsibilities such as home maintenance and housekeeping, but they don’t provide assisted living services or support with activities of daily living (ADLs).

Department of Housing and Urban Development options

If your loved one needs financial assistance, government programs may help subsidize senior housing. These programs have different structures and eligibility requirements. Here’s a quick overview of HUD housing options:

HUD subsidized senior housing

HUD subsidized senior housing is an affordable housing program specifically designed for low-income adults age 62 and older. These housing options offer benefits such as reduced rental rates and financial assistance to help older adults live comfortably and securely within their means. Residents typically pay 30% of their adjusted gross income toward rent, while the government subsidizes the remaining cost. In addition to providing financial support for older adults on fixed incomes, this housing can offer an age-restricted community where residents may find safety, camaraderie, and opportunities for social connection.

Low-Income Housing Tax Credit (LIHTC)

Assisted living communities that participate in HUD programs may provide senior housing by setting aside a specific number of units for low-income older adults. Your loved one may qualify for one of these units if they meet HUD income requirements.

Housing Choice Voucher Program

The Housing Choice Voucher Program, also called Section 8, is a federal assistance program intended to help provide affordable, safe housing for low-income families, older adults, and people with disabilities. Local public housing agencies administer rental vouchers that recipients can use to pay rent for privately owned housing of their choice. The voucher value is based on an income-adjusted calculation. Older adults typically pay about 30% of their adjusted monthly income toward rent, while the government covers the remainder.

Section 202 Supportive Housing Program

The Section 202 Supportive Housing for the Elderly Program is a federal initiative designed to address the distinct housing and care needs of older adults classified as very low income. Managed by HUD, the program supports the development and operation of affordable, supportive housing communities that offer on-site services tailored to older adults. In addition to providing rental assistance, Section 202 housing may support social connection, accessibility, and safety, helping residents age in place with dignity. Available services may include health care, transportation, and recreational activities. This combined approach gives qualifying older adults access to affordable housing and helpful services in a community setting. While Section 202 housing may be a helpful option for someone seeking assisted living support, it typically has long waitlists.

How to qualify for government-funded assisted living options

Several housing programs may help low-income older adults manage assisted living costs. Each low-income senior housing option has its own guidelines, income limits, and eligibility requirements, so you’ll need to review and evaluate each program individually.

For help finding affordable assisted living options in your area, contact your local Area Agency on Aging. This agency can be a valuable resource when you’re trying to navigate government benefits, understand available options, and follow the appropriate application process.

Can veterans benefits help pay for assisted living?

A veterans benefit called Aid and Attendance may help older adults who need assisted living support. Those who qualify and need help with activities of daily living, such as getting dressed, bathing, and toileting, can use the benefit for this level of care in a community or for personal care at home. To qualify for the benefit, they must also meet VA low-income guidelines.

Can Medicaid help with assisted living costs?

Although Medicaid may help pay for the types of services provided in assisted living, it doesn’t cover the assisted living community’s rent itself. State waivers may be exceptions, but their coverage and requirements vary from state to state. Many states offer Medicaid waivers that can help with assisted living costs, but not every state does.

The following is one example of a state assisted living waiver. Contact your local Medicaid office to learn more about the programs, coverage, and eligibility requirements that may be available in your state.

California Medi-Cal support for low-income assisted living

For California residents, Medi-Cal provides benefits for older adults and financial support for low-income assisted living options. According to California Advocates for Nursing Home Reform, the Assisted Living Waiver (ALW) allows Medi-Cal to pay for assisted living care for qualified residents.

As the organization’s website explains, “A key goal of the program was to enable low-income, Medi-Cal eligible seniors and persons with disabilities, who would otherwise require nursing facility services, to remain in or relocate to a community setting in a Residential Care Facility for the Elderly (RCFE) or public subsidized housing.”

The Medi-Cal program helps qualified people access suitable assisted living services regardless of their background or financial status. Services available to Medi-Cal ALW participants include:

• Personal assistance and help with daily living activities

• Laundry services

• Housekeeping services

• Skilled nursing care

• Daily meals, drinks, and snacks

• Transportation

• Recreational activities

• Social services

In terms of payment, ALW participants pay for their room and board at the selected assisted living community, while Medi-Cal pays for medical care and other services.

To learn more about who qualifies for low-income assisted living support and how to apply for assistance, contact the California Department of Health Care Services or the appropriate department in your home state. Everyone deserves access to quality care as they age, regardless of their financial circumstances.

More resources for finding affordable senior housing

Low-income senior care options may not be as widely available as they should be, but programs and services can help you find the support that you or your loved one needs. If you’d like assistance finding affordable senior housing in your area, contact your local HUD rental office.

We’ve also compiled lists of local resources in several major cities. These resources can connect older adults and family caregivers with local experts who understand government-funded assisted living programs and can help determine whether someone qualifies for assistance. Local organizations and services may also offer activities, support, and opportunities to meet other older adults and family caregivers. Reaching out to a local expert can give you a clearer understanding of the programs available and the application process to follow.