Seniors who have low incomes can use a variety of resources and financial assistance programs to help pay for assisted living. In 2025, more than 17 million Americans age 65 and older have a monthly income of less than $2,608. The median monthly cost of assisted living is $5,190. In many cases, seniors use a combination of sources to pay, such as Medicaid and Medicaid waivers, programs from the U.S. Department of Housing and Urban Development (HUD), veterans benefits, and Social Security. Some communities are designed with low-income seniors in mind.
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In the United States, over 17 million people aged 65 and older struggle to live on less than $31,300 annually, or $2,608 monthly[01], and many who rely on Supplemental Security Income (SSI) receive just $590 per month.[02] From government-sponsored health insurance to programs designed and operated by private, nonprofit organizations, seniors seeking low-income living assistance have several paths to choose from. The options vary by state, but using a combination of these resources may help you create the best affordable assisted living solution for your loved one.
“I help families think through what assets they may have for assisted living; maybe they have veterans or survivors benefits they weren’t aware of, maybe they have more home equity than they thought, or maybe their family members can help pay some of the costs of assisted living,” says Natalie May, a Senior Living Advisor at A Place for Mom. May has more than 30 years of experience helping families find long-term care for their loved ones.
Here are several ways low-income seniors can pay for assisted living:
“Many people are surprised to learn that Medicare won’t pay for assisted living. It will pay for some care services that may be provided in an assisted living setting, but it won’t pay for the biggest expense, which is room and board,” says May.
For the purposes of public assistance, a low income is one that’s 150% above the federal poverty level. In most states, for an individual to be considered low-income, their annual income must be below $23,475.[03] In Alaska and Hawaii, the low-income threshold is slightly higher due to higher cost of living in those states.
When it comes to applying for income-based programs, many states and cities provide services that guide families by helping them determine assets and income and by assisting them through the application processes.
A federal program that’s administered by the states, Medicaid provides health coverage to low-income and disabled seniors. State Medicaid programs cover some long-term care expenses such as home health services, nursing home care, and hospice care. To qualify for certain Medicaid programs, a senior must show both a functional and financial need.
While Medicaid covers room and board for nursing home residents, it doesn’t pay room and board in assisted living communities. However, Medicaid may provide financial support for some personal care services — such as assistance with bathing and dressing — in assisted living, if the community accepts Medicaid as a form of payment.
The specific amount that Medicaid will pay for care services varies for each individual and state. Certain states may impose copayments, coinsurance, deductibles, and other similar charges for nonemergency services based on an individual’s income. And because eligibility is based on a person’s income and assets, Medicaid may be a good option for seniors whose finances are dwindling due to paying for the costs of care.[04]
“I encourage people who aren’t receiving Medicaid benefits but who think they might need it in the future to consider communities that accept Medicaid payments because if and when they do need that financial help, they aren’t looking for a new place to live when they make that transition to public assistance,” says May.
Medicaid programs offer states the opportunity to create a variety of service options that aren’t available under Medicaid’s general federal guidelines.
Two Medicaid programs that tend to be used most often to extend additional services to eligible individuals are:
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Eligible veterans and their surviving spouses can use the VA Aid and Attendance benefit or the Housebound benefit to help them pay for long-term care. Both programs supplement the Veterans Pension and the Survivors Pension to assist in covering the cost of care. Recipients must meet specific service, financial, and clinical requirements to qualify for the VA’s long-term care benefits.
It’s important to note that a person can’t get the Aid and Attendance benefit and the Housebound benefit at the same time.[07]
The minimum monthly Social Security retirement payment of $1,093 that many individuals 65 and older receive isn’t enough to pay the total cost of assisted living. However, Social Security retirement benefits can be combined with other services and aid programs to help pay for the assistance your loved one needs.
Supplemental Security Income (SSI) and optional state supplements (OSS) provide seniors who have low incomes with additional income. Social Security Disability Insurance (SSDI) is also available for people who have a qualifying disability.[08]
In many states, low-income seniors may find that government housing options fit their housing and care needs. HUD offers rental assistance programs and provides aid to local housing agencies to create housing options for seniors with a low income. Keep in mind that there’s usually a waiting list, so it’s important to apply well before there’s a crucial need for care.
No, Section 8 (now called the Housing Choice Voucher Program) does not pay for assisted living, but it does help low-income individuals and families, regardless of their age.
Families qualify for this program if they make less than 50% of the median income for the area where they live. Qualified families are responsible for finding their own housing, and they can live anywhere the building owner agrees to rent under the program.[09]
Section 202 housing was developed for low-income seniors and helps them live independently, often by including supportive services. Operated by private, nonprofit organizations, Section 202 housing allows seniors who qualify for the program to pay as little as 30% of their income toward rent.
In states that have Section 202-designated housing, many communities offer 24-hour skilled nursing care as well as assistance with activities of daily living (ADLs) such as bathing, dressing, cooking, and cleaning.[10]
HUD Section 811 is like Section 202 but supports all people who have a disability, regardless of their age. As with Section 202, Section 811 living options are operated by private, nonprofit organizations. Rent for qualified seniors starts at 30% of their adjusted gross income (AGI).
Some states have Section 811 buildings or homes to support the diverse needs of people living with disabilities. Comparable to assisted living facilities, Section 811housing offers on-site care along with services such as transportation, housekeeping, and meal preparation.[11]
For families interested in learning more about Section 811, Section 202, or Housing Choice Voucher (Section 8) programs, the nearest HUD regional office or a local Area Agency on Aging can provide more information on the various HUD programs in your area.
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Depending on your loved one’s care requirements, there may be affordable alternatives to an assisted living community, including living with family or in a private home with on-site care, also known as board and care homes. There are also in-home care services that help seniors to age in place. Consider these common options as a stand-alone solution or combine several of them to meet your family’s needs.
Low-income seniors who would prefer to live in their current home may have access to a variety of support options. In addition to using HUD programs to help them pay rent, they may be eligible to use Medicaid and Medicare to pay for in-home care services that support them with daily activities and health care.
In many states, Medicaid programs can be used to help pay for in-home care, which can be customized to a senior’s needs and lifestyle. In-home caregivers can provide personal care, such as bathing and dressing, or offer companionship with frequent visits to play games, have conversations, or help with cooking. For seniors who need help getting out of the house, in-home caregivers can arrange transportation to attend events, activities, or appointments.
Many private, nonprofit organizations also offer low-cost and free support services for low-income seniors who live independently at home. For example, Meals on Wheels, a national organization that operates in most states, not only delivers food to homebound seniors but also offers some companionship services.
Living with family can be an option for low-income seniors who are unable to live alone safely. Family members can offer support with ADLs, transportation, and social interaction.
Some families may qualify for HUD vouchers or programs to help them pay rent. And like the support offered to low-income seniors who live alone, federal and state health insurance may help provide home care to supplement care provided by family.
The homelike setting of residential care homes offers an intimate environment where residents can receive personalized care. While many of these communities provide similar services and amenities to larger assisted living facilities, they’re often a less expensive option, depending on location.
In many states, there are nonprofit programs that can help supplement living costs for low-income seniors. For example, in Denver, Colorado, the “Area Agency on Aging provides funding for senior care and services such as meal programs, transportation, and home health,” said Shannon Gimbel, regional manager at the Denver Regional Council of Governments.
Community resources that can guide people through the processes of applying for aid and finding assistance are available in most states and cities.
Many cities have a public housing authority (PHA) office, which can help your family navigate the public housing options in your area that are available for low-income seniors. Local PHA offices may also offer to help you determine income status and apply for HUD programs that your loved one may qualify for.
If you’re unsure of where to start, Senior Living Advisors at A Place for Mom can help you explore payment options and the types of senior living you can afford. They can also provide guidance as you’re searching for home care agencies, all at no cost to your family.
Assisted living for low-income seniors living with a mental illness offers structure, support, and therapeutic activities for residents. It may be referred to as behavioral assisted living and the community may be smaller in size.
The National Council on Aging. (2024, June 1). Get the facts on economic security for seniors.
Social Security Administration. (2025, February). Research, Statistics & Policy Analysis.
Office of the Assistant Secretary for Planning and Evaluation. HHS Poverty Guidelines for 2025.
Centers for Medicare and Medicaid Services. Cost sharing out of pocket costs.
Centers for Medicare and Medicaid Services. (2025, February 7). State Medicaid plans and waivers.
Centers for Medicare and Medicaid Services. Program of All-Inclusive Care for the Elderly.
U.S. Department of Veterans Affairs. (2024, July 18). VA Aid and Attendance benefits and Housebound allowance.
Social Security Administration. (2025, January). You may be able to get Supplemental Security Income (SSI).
U.S. Department of Housing and Urban Development. Housing choice vouchers fact sheet.
U.S. Department of Housing and Urban Development. Section 202 supportive housing for the elderly program.
U.S. Department of Housing and Urban Development. Section 811 supportive housing for persons with disabilities.
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