The Impact of Temporary Rental Subsidies on Homelessness: A Randomized Controlled Trial

• In Event: Long-term Effects of Housing Vouchers: Findings from the Family Options Study 12-Year Followup

Abstract

Unconditional, indefinite housing subsidies have been shown to reduce homelessness, but such programs are massively over-subscribed. Policymakers have expanded less expensive, time-limited Rapid Re-Housing (RRH) subsidies to serve more people, with little empirical backing. Time-limited rental subsidies are predicated on the idea that homelessness results from financial constraints that can be addressed with temporary assistance. We conduct a randomized controlled trial with 733 people that provides temporary rental subsidies to single, homeless adults. During the 30 months after random assignment, the treatment group receives an unconditional average of about $10,000 in financial assistance, even though only about half of those assigned to the treatment group successfully lease a unit with assistance. Preliminary results indicate that this assistance leads to a reduction in homelessness of one third and a reduction in the number of shelter days by two-thirds while the subsidy is active. Preliminary sub-sample results indicate that a substantial portion of these effects persist after the subsidy ends.

This paper relies only on local data. We have enrolled all participants and received some follow-up data for all participants. We anticipate results from long-term follow-up will be available by fall 2025.

Author

• David C Phillips, University of Notre Dame
  Presenting Author