Federal Assistance Programs Help Mitigate the Worst of the Housing Crisis

Housing affordability challenges are pervasive across the country. In 2023, a record-high 22.6 million renter households—half of all renters—were cost burdened, meaning they spent more than 30 percent of their income on rent and utilities. When households spend more on rent, they have less to spend on everything else including food, childcare, clothing, transportation, and healthcare. Many of these renters are income-eligible for housing assistance but don’t receive it, as these supports are not entitlement programs. In fact, only one in four eligible households receive housing support. For those who don’t, other federal programs such as the Supplemental Nutrition Assistance Program (SNAP) and Medicaid are crucially important to make ends meet. But cuts to funding and changes to these programs will exacerbate the consequences of unaffordable housing, especially for lower-income households, families with children, and those headed by an older adult.

After accounting for housing costs, renters have $2,850 per month left over for all other expenses, according to Center tabulations of the American Community Survey. Those with cost burdens have just $1,068 left over. Lower-income households have even less. Renters earning less than $30,000 annually had just $250 in monthly residual income in 2023, down 44 percent from 2019.

Renters with affordability challenges don’t just have less income left over, they spend substantially less on essentials. According to Center estimates derived from the Consumer Expenditure Survey, renters in the lowest expenditure quartile (our proxy for low-income) who were severely cost burdened spent less on food by 39 percent and less on healthcare by 42 percent compared to unburdened lower-income renters.

As households dedicate more income to housing, the price of other goods has risen, forcing already stretched incomes even thinner. According to Center tabulations of the Consumer Price Index, the price of all items except shelter rose 24 percent between September 2019 and September 2025, including even steeper increases for food and beverages (31 percent) and transportation (31 percent).

Various forms of public assistance can help stabilize household finances as families grapple with growing costs. SNAP, for example, largely supports lower-income working families, older adults, and people with disabilities by supplementing grocery budgets. Benefits for a family of three average about $600 per month. Medicaid provides health insurance to over 70 million low-income people, mostly children, older adults, and people with disabilities.

For households who struggle to pay rent, much less cover their day-to-day essentials, such programs are a lifeline. Indeed, 37 percent of renter households in the US have at least one member receiving Medicaid and 22 percent received SNAP (Figure 1). These rates are higher for those with cost burdens, at 45 percent and 29 percent, respectively. Because housing assistance is not an entitlement, it leaves other programs to help pick up the slack. And it’s not just renters who benefit from these programs: Fully 29 percent of homeowners with cost burdens had Medicaid and 12 percent received SNAP.

Figure 1: Federal Assistance Programs Are Especially Important for Households Living in Unaffordable Housing

Note: Cost-burdened households spend more than 30% of income on housing.
Source: JCHS tabulations of US Census Bureau, 2023 American Community Survey 1-Year Estimates.

These programs are especially likely to help those with the greatest needs. Lower-income households, those with children, and those headed by an older adult are more likely to receive non-housing assistance. Fully 85 percent of extremely low-income renters (earning up to 30 percent of area median income) have cost burdens. Among these households, two-thirds (61 percent) have Medicaid while about half (47 percent) receive SNAP assistance (Figure 2). As eligibility is determined in part by income, these rates decline swiftly at higher income levels. Likewise, over half of renters with children were burdened by housing costs, a substantial three-quarters (73 percent) received Medicaid, and just under half (46 percent) received SNAP. Well over half of older adult renters were burdened, at a rate of 58 percent. While many of them are likely eligible for Medicare, just 38 percent had Medicaid and 30 percent benefited from SNAP.

Figure 2: Federal Programs Are a Lifeline for Extremely Low-Income Renters with the Greatest Affordability Challenges

Note: Cost-burdened households spend more than 30% of income on housing.
Source: JCHS tabulations of US Census Bureau, 2023 American Community Survey 1-Year Estimates.

Federal assistance programs face impending cuts at a time when housing unaffordability is at an all-time high and the cost of everything else has risen substantially. According to an analysis by the Center on Budget and Policy Priorities of the budget reconciliation bill signed in July 2025, 4 million people will have their SNAP benefits cut or significantly reduced. The act will also reduce benefits for all people enrolled over time by capping Thrifty Food Plan cost increases, the basis for assistance levels published by the US Department of Agriculture. Similarly, 7.8 million people are projected to become uninsured due to cuts in Medicaid, according to the Congressional Budget Office.

Cuts to these programs threaten to intensify the worst implications of unaffordable housing for those with the greatest needs. Beyond the immediate benefits of providing food to families and access to healthcare, SNAP benefits are associated with reducing food insecurity while the loss of these benefits is associated with increased likelihood of food insecurity and worse health outcomes. For children, food insecurity is linked to poor developmental behavior and lower math and reading scores. For adults, food insecurity is associated with higher rates of chronic diseases including hypertension, heart disease, and kidney disease. Likewise, Medicaid coverage is associated with an array of benefits, including improved health and educational outcomes for children that last into adulthood, as well as reduced mortality and improved financial well-being for adults.