Homelessness

The soaring cost of housing is a major driver of homelessness. As rents and home prices have climbed far faster than wages, many people are pushed to the edge of homelessness. Research shows that when median rent consumes more than 30–34% of median income, homelessness increases. Today, someone earning the federal minimum wage full‑time could afford only about $350 a month in rent to stay under that 30% threshold — far below what the market offers.

These pressures hit people with SMI especially hard. Although many factors shape the connection between SMI and homelessness, financial strain plays an outsized role. A 2021 study found that nearly 40% of the link between SMI and homelessness was attributable to financial hardship alone, underscoring how economic vulnerability compounds the additional challenges individuals with SMI already face.

There are several types of living situations that may be beneficial for people with SMI who require additional support to live in the community, including permanent supportive housing, group homes, transitional housing, or in-home services. However, these services are in short supply, and finding and applying for appropriate programs that have spots available can be challenging. For example, many programs may require interviews, psychiatric evaluations, and paperwork to be considered for admission. For people who have SMI and are unhoused, filling out this paperwork and securing reliable transport to interviews may be a significant limitation.

Without access to these programs, many individuals with SMI have no other form of available, accessible, and appropriate housing and may become homeless. While affordable housing is essential to reducing homelessness, many people with SMI may still need additional supports, including treatment, to live safely and with stability in the community.

In addition to the shortage of low-income housing, prejudice can also limit housing options for people with SMI. Landlords are not permitted to refuse potential tenants because of a disability. However, criminal history, prior evictions, past or current homelessness, and income source are not protected characteristics in all jurisdictions, which may have a disproportionate impact on people with SMI. Even those who do obtain housing can become at risk of eviction because of “nuisance laws” that allow landlords to evict tenants due to the repeated presence of emergency vehicles. In other words, people with severe mental illness can be evicted for contacting emergency services for help during a mental health crisis.

Those whose disability makes it difficult to sustain meaningful employment may be eligible for Social Security Disability Insurance (SSDI). The average SSDI payment hovers around the national poverty line. However, to qualify for SSDI, individuals over age 24 must have significant work experience. SSDI can also be supplemented by Supplemental Security Income (SSI) in some cases.

SSI is another social program that people with SMI may be eligible for and is designated for individuals with a disability and very low income. In 2026, the maximum monthly payment for a single person was $994, which is $11,928. This amount may be reduced if an individual brings in income over $20 in a month. Additionally, individuals receiving SSI must not have any assets (excluding personal belongings, a car, or a house) that exceed $2,000.

While these policies are designed to prevent abuse of the welfare system, they also keep individuals from being able to save money which could be used to provide a financial buffer in times of emergency or for security deposits on apartments, resulting in homelessness. If a person receiving SSI loses their housing, it may be very difficult to save up for a security deposit and first month’s rent without exceeding the maximum amount of allowed assets, which can result in homelessness.