What to do When You Can’t Afford Rent

Most people have to pay for housing. In fact, it’s probably one of the biggest, if not the biggest, bill you pay every month. That can be tough when you’re living paycheck to paycheck, particularly with rent costs skyrocketing in recent years.

No matter what your financial situation, if you can’t afford rent there are solutions and steps to take that can help solve the problem. Letting your landlord know, seeking government assistance, and finding ways to change your financial situation are all key. If the issue goes beyond simply not having the money, many of the same organizations that can help with rent can also offer resources to resolve problems with your landlord.

More than 22.4 million American households that pay rent – more than 50% of renters – are cost-burdened, which is defined as housing costing more than 30% of your monthly income. The bigger the chunk of income that must go to rent, the tougher it is to pay other bills. Consequences can range from sky-high credit card balances to losing your home.

Taking steps before not being able to afford the rent escalates into a financial free-for-all.

1. Explore Government Assistance Programs

If you can’t pay your rent because you don’t make enough money, the government can help. There are a variety of government assistance programs that provide both short-term and long-term rent assistance. Local state and federal programs funded by the U.S. Department of Housing and Urban Development (HUD) provide housing that includes units with rents affordable to low-income tenants and vouchers that help offset rent payments at privately owned housing. HUD also provides free housing counseling to help you determine what the best solution is. Temporary financial aid to pay other bills is also available. If you think your income is too high, check it out anyway. HUD income standards are based on area median income (AMI) and vary depending on location.

Every state has a housing agency or authority that administers HUD programs that help pay rent. To find out if you qualify and how to apply for rental assistance, contact your local housing authority. HUD’s website lists every state’s housing agency contact information.

Subsidized Housing and Housing Choice Vouchers

Subsidized housing is paid for by the government, directly to landlords, who offer reduced rent to tenants with low incomes. Another long-term rental assistance program is housing vouchers, commonly known as Section 8, which will cover all or part of rent at privately owned housing and can be used by low-income households, seniors, and people with disabilities. HUD’s Home Invest program supports nonprofits and organizations in developing affordable housing.

HUD Counseling Services

HUD’s housing counseling program helps individuals and families find, and keep a safe, affordable home. Your local housing agency has counselors who can help you determine what kind of rental assistance works for your situation. To find a counselor, call 800-569-4287 (202-708-1455 TTY), or search on the HUD website.

Emergency Rental Assistance (ERA) Program

Funded through the U.S. Department of Treasury and administered by states, tribal entities and local governments with large populations, ERA was created during the pandemic, and then continued as a long-term measure. It provides emergency support for renters who qualify and are in danger of losing their home, particularly those facing eviction because of nonpayment. Assistance may cover rent, back rent, utility and home energy payment assistance, tenant-landlord mediation services, and other resources.

2. Negotiate With Your Landlord

The hardest words you ever may have to say to your landlord are “I can’t pay my rent.” Take a deep breath and do it.

If you can’t pay your rent, let your landlord know as soon as possible. Being upfront and honest, even if it is met with a negative reaction, is the first step toward solving problems with your landlord. Be sure the conversation doesn’t end with that statement. Be prepared to offer solutions you can discuss or negotiate with your landlord. Evictions are expensive. Your landlord would rather have the rent payment. Let them know you would like to work it out, too.

Tips and steps to help negotiate with your landlord when you can’t afford to pay your rent:

• Know your lease: Your lease spells out the amount of your rent payment, when it’s due, and eviction information. Know the details when you negotiate with your landlord.
• Know your rights: In some states, a landlord can start eviction proceedings seven days after a rent payment is late. Know how much time you have to solve the problem, as well as what action your landlord can take and what the steps are.
• Have a script ready: Prepare what you’re going to say beforehand, including what solutions you can offer. If you plan to negotiate, work out answers to questions and pushback that may come up. When you talk to your landlord, address the problem in a calm, nonpersonal manner.
• Do it in person if possible: As tempting as it may be to text or email if you can talk to your landlord or their representative in person, do it. A conversation in which you can answer questions, react, and put your best face forward will be more productive than texting. If you must email, these steps still apply. Be professional and to the point.
• Be upfront and positive: If you have an unexpected financial crisis – divorce, loss of income, illness – be honest about it. If they understand why you can’t pay, they may be more flexible. Let the landlord know what it means to you to stay. Are you close to work or school? Would transportation be a problem if you had to move? Do you appreciate the condition of the apartment and the hard work the landlord does? Let them know.
• Make an offer: There may be simple solutions that can work for both you and your landlord. Can you pay later in the month or change your due date for a few months? Will they accept a reduced payment or allow you to skip a month and pay it back? Before you propose a plan, make sure you will be able to carry it out.
• Stick with your end of the agreement: If you agree to a payment plan, stick with it.
• Have them help with getting rental assistance: Your state’s housing agency accepts applications from both landlords and tenants. Enlist your landlord’s help in applying for assistance, which could include a voucher or subsidy that’ll help cover your rent.

3. Consider Alternative Housing Options

If you can’t pay your rent, it may be necessary to consider alternative housing options. Getting a roommate, subletting, or moving are all possible options. All come with positives as well as potential drawbacks.

Co-living

If you can accommodate a roommate, family or friends are the best place to start. Vet acquaintances or strangers thoroughly before agreeing to share your home with them. Whether it’s your sister or a stranger from Craigslist, be sure you have a written agreement that covers rent, when it’s due, security deposit, and house rules. It may be awkward, but if you are getting a roommate to help with the rent, you want it to work for you and achieve the goal. Make sure your lease allows another person in the apartment.

Subletting

You may be able to sub-let your apartment, have a new tenant cover your rent, while you move in with a family member or find some other low-cost or no-cost temporary option. As with getting a roommate, having a written lease agreement is an absolute must. Check your own lease as well, to make sure that you’re allowed to sublet.

Find a More Affordable Apartment

This may be virtually impossible, depending on where you live. If it’s necessary, though, start with your state’s housing agency to see if you qualify for subsidized housing, even if it means getting on a waiting list. Scour internet ads, but also ask friends and family if they know of an available place or someone looking for a roommate. Take out an ad, saying you’re looking for a co-living situation or apartment (proceed with caution and vet any potential living situations if you don’t know the person). You may have friends or family who also want to live more cheaply and would pool resources to find housing that works for everyone.

4. Increase Your Income

Increasing your income may be all you need to pay the rent. Finding extra income is easier than it’s ever been, with businesses desperate for workers, the number of gig economy jobs, and remote work. Retail stores, restaurants and other businesses that pay by the hour in many parts of the country have staffing shortages and offer high hourly wages, flexible schedules and even sign-on bonuses.

Remote work opportunities have flourished, and there may be part-time jobs that you qualify for that you can do from home and on your own time. You may also consider looking for a new job with a higher income that offers remote work, allowing you to stay in your apartment.

There are also many “gig economy” jobs that you can do on your own schedule, like driving for a ride share, Door Dash, or Instacart.

Do you have a skill that you can parlay into freelance work? Something you can sell?

If you’re looking for ways to increase your income and are behind on your rent or won’t be able to pay the upcoming bill, don’t assume it will be an immediate fix. Continue to look at other solutions to at least pay the upcoming rent.

If you’re exploring increasing your income through side jobs or freelancing, be sure you can answer these questions:

Is it sustainable money? If your rent-payment issue isn’t temporary, your income-boost solution can’t be, either. Selling that baseball card on the internet may have netted you $500, but what are you going to do next month?

Will it cost more than it’s worth? If the schedule of your side gig interferes with your full-time job or increases your transportation and childcare costs, it may not solve the problem. If you’re going to make jam or cupcakes and sell them, be sure you comply with your local health regulations and can afford any permits, fees, and kitchen upgrades. The costs of a second job can be physical and mental as well. Can you handle working 60 hours a week for the foreseeable future?

Is it realistic? Before you embark on a freelance career, no matter how skilled you are, research the market and make sure you will make money, rather than expend a lot of unpaid time trying to find work, or working hard at something that doesn’t pay what you need. The freelance market is flooded with writers, editors, graphic designers, web developers and similar workers from industries that have had massive layoffs in recent decades. If you decide to try driving for a ride share, Instacart, Door Dash, or some other gig economy job, research how much money you can realistically make in your area (it may just be pennies an hour), as well as what upgrades you may need to make to your vehicle and insurance.

Will the extra money solve the problem? If you have figured out a second income source, be sure that you have a budget, and stick to it, so that the money goes to paying rent, or other bills. If you’re not disciplined, the increased income may end up paying for things that don’t help you make the rent every month.

If a second job or side gig won’t work for you, are there other steps you can take to increase the money you have on hand? For instance, trading in your car for a less expensive one, or selling your car and relying on public transportation? Cutting expenses may be all the income increase that you need.

5. Utilize Community Resources

The government isn’t the only place to turn for rental assistance. Community organizations, nonprofits and churches may also be able to help. Taking advantage of your local food bank, or utility bill help, may free up income that will loosen up money for rent. Your church, council of churches, local government, or United Way office can help you find rental assistance or other help.

Some community resources that may help you pay the rent are:

Contact 211: An emergency hotline that can help you identify available resources if you have a rent-payment or utility bill issue. Dial 211 from your cellphone or landline, or access its website at 211.org.

Legal aid/legal services: Your state has organizations that provide free or low-cost legal services for those who need them, including help negotiating with landlords or dealing with eviction. Type your state’s name and legal services into your search engine. The Consumer Financial Protection Bureau has a list of states’ legal aid organizations.

6. Long-Term Strategies

Even if you find a solution to pay your rent, you need a long-term financial plan so that you can sustain payments and find solid financial footing that will serve you and your family in the future.

Long-term financial solutions that will make sure the bills get paid and help you build wealth always start with a budget. A budget can be simple – it’s defined as a working document that tracks your income, your bills and other expenses. You’re in control of it, deciding how you will spend your money each month, and strategizing solutions to make your paycheck stretch to cover bills. A budget is a clear picture of where your money is going and where you have to make changes.

Your budget not only covers your bills but should include an emergency fund, as well as savings for future goals.

Sounds simple, right? But it can be hard to do on your own. Housing agencies, many credit unions, adult education programs and nonprofits offer free budgeting and money management courses that can help you strengthen budgeting and money-handling skills.

You may also want to seek out a certified credit counselor, particularly if you have more credit card debt than you’d like. Credit counselors at nonprofit agencies like InCharge can help you create a budget, as well as offer resources and debt relief options that fit your financial situation. The National Association of Certified Credit Counselors can help you find one in your area.

7. Emergency Rental Assistance

Some charities and organizations that help people who can’t pay their rent are:

The National Coalition of State Housing Authorities has links to each state’s housing authority-administered emergency rental assistance program.

Community Action Agencies provide a wide range of services and resources for low-income people, including housing resources.

Catholic Charities provides assistance for those in need, regardless of religion, race, nationality, gender or ability to pay. It has extensive assistance programs that not only help with housing but also food and paying other bills.

The Salvation Army offers help with rent, utilities and emergency shelter. Programs vary, depending on location.

Modest Needs is a nonprofit that provides grants of up to $1,000 directly to the landlord of someone who has no other means of paying their rent.

General Assistance programs exist in 25 states and offer help, either one-time or monthly, for residents who don’t qualify for other assistance. Each state that offers GA is different. Some offer small emergency grants, others offer help with accessing other resources. Check your state’s Department of Health and Human Services webpage to see if it’s offered in your state, and how to apply.

8. Know Your Legal Rights

If you can’t afford to pay your rent, particularly if you’re facing eviction, knowing your rights will help you figure out an informed solution, land on your feet and not get taken advantage of.

Every state has laws regarding evictions and how your landlord must go about it. In general, the laws include when a landlord can start eviction proceedings, what circumstances allow a tenant to withhold rent, and how much notice a landlord must give when raising rent.  Some states have strong tenant-protection laws, others give the advantage to landlords.

The federal Fair Debt Collection Practices Act governs debt collectors, including those trying to collect rent for landlords. Debt collectors can’t use unfair, deceptive, or abusive practices to try to collect a debt.

Your state’s housing agency has information on your rights, as well as housing counselors who can help you understand them. HUD’s website lists every state’s housing agency contact information.

Your state’s legal aid or legal assistance organization can also help, particularly if you need someone to advocate for you. The Consumer Financial Protection Bureau lists states’ legal aid organizations. A study by the Maine Coalition for Affordable Housing found that legal representation is one of the most effective ways for tenants to avoid eviction. Tenants with an attorney were 85% more likely to avoid an eviction judgment than those without it. Research also has found women and people of color are more likely to be evicted for not paying rent, and that low-income women, especially those of color, have the highest risk of eviction. Domestic violence victims and families with children are also at high risk.

Going Beyond Rent Relief

If you can’t afford to pay the rent, the problem isn’t going to go away if you ignore it. It’s up to you to take charge and find a solution.

The resources and organizations listed above will likely include a solution for you or the first steps on how to reach one. Go over your finances and situation, explore resources on how to save money on rent, and determine the best way to work out a solution.

If you don’t know where to start, find a housing counselor at your state’s housing agency or at a HUD-approved certified credit counseling agency that offers housing counseling, like InCharge. If you are overwhelmed by debt, credit counseling is another service offered by agencies like InCharge. A credit counselor can review your finances with you and help you find resources and solutions that go beyond rent relief.

» Learn More: Financial Help for Low-Income Americans

» Learn More: How Much Rent Can I Afford?