D.C.'s Flexible Rent Subsidy Helps Families Avoid Homelessness

In a report for the Urban Institute and The Lab @ DC, Josh Leopold, Mychal Cohen, Maria Alva, Nat Mammo, and Sam Quinney evaluate the impact of the city's flexible rent subsidy program on housing stability in the District. "Flexible rent subsidies are one tool local governments are exploring to help families that are currently housed but remain one shock away from homelessness. A flexible subsidy allows families to decide how much of the subsidy to spend each month, up to their total rent. This flexibility can be particularly valuable for workers whose earnings fluctuate, such as seasonal workers and those in the 'gig' economy, who have been especially hard hit this past year."

D.C.'s program, DC Flex, "gives families $7,200 a year for rent to use whenever they need" and "was designed to fill a niche for families who do not need the case management offered in typical homeless assistance programs but who do need a subsidy to reliably afford rent and avoid homelessness."

"A review of the DC Flex account data showed 60 percent of program participants spent the full $7,200 over the course of the year, and others preserved funds for their second year in the program.  This result suggests participants use the program’s flexibility to suit their specific financial needs." According to the study's authors, "[t]his is the moment for trying and testing flexible subsidies more broadly, and the DC Flex program is a promising example of how these programs can be structured."