Can I Use My Disability Benefits to Pay for Housing?

What You Need to Know About Paying Rent or a Mortgage with SSI or SSDI

Introduction: Can Disability Benefits Cover Housing Costs?

One of the most common questions we hear is:

🏠 Can I use my SSI or SSDI to pay for housing?

🏠 Will paying rent affect my benefits?

🏠 How does my living situation change how much I get from Social Security?

The short answer:

✔ Yes, you can use disability benefits to pay rent or a mortgage.

✔ But if you receive SSI, how much you pay—and who you live with—can affect your monthly benefit.

✔ SSDI benefits are not impacted by your living arrangement.

In this guide, we’ll break down:

✅ How SSI and SSDI treat housing expenses

✅ What counts as "in-kind support"

✅ How much your benefits may be reduced if you get housing help

✅ Tips for staying compliant with Social Security

✅ How Purple helps track rent, housing support, and eligibility

1. Yes, You Can Use Disability Benefits to Pay for Housing

Both SSI and SSDI recipients are allowed to use their monthly benefit payments to pay for:

• Rent

• Mortgage payments

• Utility bills

• Property taxes and insurance

• Other household-related expenses

In fact, housing is usually the largest monthly cost for people receiving disability benefits—and SSA understands that.

💡 There is no rule saying you can’t use your disability check for rent or housing-related costs.

2. If You're on SSDI: Your Housing Situation Doesn’t Affect Your Benefits

If you receive SSDI (Social Security Disability Insurance):

• Your benefits are based on your work history, not your current income or living situation.

• You can live with others, have someone help pay your rent, or own a home—it doesn’t change your SSDI payment.

✅ You can use your SSDI benefits for housing without worrying about reductions.

✅ You can save up for housing costs too (SSDI has no asset/resource limit).

3. If You're on SSI: Housing Help Can Affect Your Payment

SSI is a needs-based benefit, so your living situation matters.

The 2025 SSI maximum benefit for an individual is $967/month. But that amount can go down if:

• Someone else is helping pay your rent or utilities

• You live with others and pay less than your fair share

• You live rent-free in someone else's home

📉 This reduction is called "in-kind support and maintenance" (ISM) and can reduce your SSI by up to one-third.

🏠 Example 1: You Pay Full Rent on Your Own

• SSI considers this “independent living”

• You’ll receive the full SSI benefit ($967/month)

🏠 Example 2: You Live with a Parent Who Doesn’t Charge Rent

• SSA may assume you’re receiving in-kind support

• Your benefit could be reduced by up to $322 (⅓ of the federal max)

• You’d receive around $645/month

🏠 Example 3: You Split Rent with a Roommate

• SSA will calculate whether you’re paying your fair share

• If so, your full benefit may be unaffected

💡 SSA uses local cost-of-living standards to decide what your "fair share" of rent or utilities is.

4. What Counts as In-Kind Support?

In-kind support is non-cash help with basic needs, such as:

• Free or reduced rent

• Utility payments made by someone else

• Living in someone’s home without paying a fair share

📌 SSA considers this a form of income, which is why it may reduce your SSI.

✅ If you're paying your full share, SSA should not reduce your benefits.

5. How to Avoid Losing Benefits Due to Housing Support

To stay safe:

• Pay rent, even if it’s small—free rent can reduce your benefit

• Get a written rental agreement, even with family

• Keep records of:

  • Rent payments

  • Shared expenses

  • Utility bills

💡 If you receive help with rent from someone else, SSA may reduce your benefit, but the impact depends on how much help you're receiving.

6. Can You Use an ABLE Account for Housing?

Yes—ABLE accounts can be used to pay housing expenses without affecting your SSI, as long as:

• You spend the funds in the same month they're withdrawn

• You use them for qualified disability expenses, including rent, mortgage, and utilities

📌 2025 ABLE contribution limits:

• $19,000/year base

• + $15,060 (ABLE to Work) for employed individuals in the continental U.S.

💡 Purple helps you connect to ABLE accounts and track those contributions.

7. How Purple Helps Manage Housing and Stay Compliant

💜 Track Rent & Utility Payments – Keep a timeline of what you paid and when

💜 Tag Expenses by Category – Show SSA how your benefits are used

💜 Store Rental Agreements – Upload housing docs for easy access during SSA reviews💜 Monitor Balance Alerts – Avoid going over the SSI $2,000 limit

💜 Use Purple with ABLE – Save for housing without risking your benefits

8. FAQs About Paying for Housing on Disability

Can I Use SSI or SSDI for Rent?

✔ Yes! SSA expects you to use benefits for basic needs like rent, food, and utilities.

Will My SSI Be Reduced If I Live with Family?

✔ It depends—if they help with rent or food, your benefits may be reduced.

What If Someone Else Pays My Rent?

✔ SSA may lower your SSI check to account for in-kind support.

Do I Need to Report My Rent Situation to SSA?

✔ Yes, and you should also report if it changes (e.g., moving, rent increase, roommate changes).

Can I Pay My Rent Using a Debit Card Like Purple?

✔ Absolutely—and you’ll have a clear digital record for SSA or housing reviews.

9. Conclusion: Yes, You Can Use Disability Benefits for Housing—Here’s How to Do It Safely

✅ It’s totally okay to use SSI or SSDI to pay for rent or a mortgage

✅ If you’re on SSI, who you live with and how much you pay matters

✅ Make sure to track payments and stay under income/resource limits

✅ Use Purple to stay organized, avoid overpayments, and protect your benefits

💜 Sign up for Purple to manage your benefits, rent, and housing all in one place.