Beyond the Rapid Rehousing Cliff: Evidence from a Cash Transfer Pilot for Families Exiting Homelessness

• In Event: Strengthening Rapid Re-Housing Programs

Abstract

Families exiting Rapid Rehousing (RRH) programs face a steep ‘benefits cliff,’ often leaving them vulnerable to eviction, instability, and returns to homelessness. In this study, we present results from the Bay Area Thriving Families (BATF) study, which examines the effects of the benefits cliff on families exiting RRH in the Bay Area.

BATF combines a randomized controlled trial (RCT) with a longitudinal qualitative study to examine whether $1,000 in monthly unconditional cash support for 12 months can help stabilize families after RRH subsidies end. Currently, 241 participants, including 328 children, are evenly assigned to treatment and control groups. The RCT has administered 240 baseline surveys, along with 94 12-month and 26 24-month follow-up surveys. This paper draws on over 140 in-depth qualitative interviews, including 25 longitudinal participants, to understand how and under what conditions cash assistance shapes transitions off RRH and influences housing stability, financial security, and well-being.

Findings indicate that RRH is effective at initially stabilizing families, often enabling a transition to independent housing for the first time. However, many families had to move to lower-cost regions of the Bay Area to use their RRH subsidy. These moves disrupt social networks, limit access to services, and complicate childcare arrangements; the loss of case management at program exit further compounds these challenges. At the same time, families with stronger social networks often experience relatively softer landings, as the ability to temporarily double up with friends or relatives provides a critical informal safety net when the benefits cliff occurs.

Findings also show that the subsequent cash assistance primarily functions as a short-term buffer and transitional support. Families report that monthly payments reduce income volatility, mitigate cascading financial shocks, and provide a critical bridge for covering rent, relocation costs, and basic needs. For some, this added runway facilitates upward mobility, including pursuing education or transitioning from part- to full-time employment. Cash receipt also enhances autonomy, dignity, and psychological well-being, enabling families to make decisions aligned with their own priorities. However, in high-cost housing markets, $1,000 per month is insufficient to meaningfully expand housing options or ensure long-term stability. Most families anticipate the expiration of cash assistance and generally do not adjust their housing decisions in response. 

These findings highlight a central policy tension: while flexible cash support can help families weather the RRH exit period, it does not replace the need for deeper or longer-term assistance among higher-need households. We argue that modest, time-limited cash transfers can extend families’ post-RRH “runway,” but must be paired with continued case management and for some, sustained subsidies, alongside system-level strategies to address affordability in order to meaningfully mitigate the RRH cliff.

Author

• Tessa Napoles, University of California, Berkeley
  Presenting Author