Getting a new apartment can be tricky due to the costs of a security deposit and the first month’s rent.
Such expenses can stop many renters from getting safe and stable housing.
Various assistance programs can help reduce these costs and support you during the move.
Help is available from private companies, government programs, and non-profits to make the transition to a new home easier.
Find out which programs exist, who can get help, and how to apply for this crucial financial aid.
Private Company Assistance
Private companies seek profits. Tenants pay for services that help with their security deposit and first month of rent.
Loan Companies
Finance companies can help tenants with security deposits by reducing the upfront monetary burden. Personal loans offer quick access to cash.
Personal loans let tenants move in without saving the full amount in advance. They can then make affordable monthly payments while living in their new apartment.
Having a good credit score helps with a personal loan.
Credit Repair Companies
Credit repair companies help lower security deposit requirements. They improve credit scores and financial profiles.
Landlords check credit scores to see financial reliability. A higher score can mean lower risk and fewer upfront costs.
Credit repair companies find and fix errors on credit reports, such as incorrect late payments and accounts that do not belong to the individual. Fixing these errors can lower the upfront costs required by landlords.
Insurance Companies
Many insurance companies help lower security deposit needs. Renters pay a small, non-refundable premium instead of a large cash payment.
For tenants with limited money set aside, security deposit insurance removes the need to save a considerable sum, making renting easier.
Rental Companies
Apartment management companies may offer the first month free to attract new tenants. These deals are prevalent when many units are empty.
Search online for apartment deals. Property managers want to keep units full, so find complexes with many empty units to reduce upfront charges.
Government Assistance Programs
Government programs can help with the first month’s rent and security deposit. They aim to lower financial barriers for low-income families.
Single mothers often qualify. The federal poverty level favors one income earner with many dependents.
Section 8
Section 8 housing vouchers indirectly help with security deposits. They can lower the monthly rent by 70% over the lease term.
Apply for Section 8 benefits through your local Public Housing Agency. Reduced monthly rental payments improve your debt-to-income ratio (DTI). Lower monthly rent improves your debt-to-income ratio (DTI). A low DTI makes getting a loan or paying insurance premiums easier.
HOME TBRA
The HOME Tenant-Based Rental Assistance (TBRA) program helps with housing costs, including security deposits. The benefits stay with the household so they can move to a new unit within the program’s term.
Contact your local housing authority to apply for HOME TBRA benefits. Income, household size, and regional criteria determine eligibility.
LIHEAP
The Low-Income Home Energy Assistance Program (LIHEAP) can indirectly help with security deposits. Lower utility costs might mean that landlords require less money upfront.
Many apartment managers include gas and electricity in the rent. LIHEAP might lower these costs.
Each state sets LIHEAP eligibility for renters. Benefits depend on three financial setups.
- Subsidized with heat included in rent
- Subsidized direct pay
- Nonsubsidized with heat included in rent
ERAP
Some states still support Emergency Rental Assistance Programs (ERAP). ERAP might cover security deposits, rent arrears, the first month’s rent, and sometimes utility costs.
ERAP funding started during the COVID-19 pandemic. Many states are no longer accepting new applicants because the emergency has ended.
Contact your local housing agency to see if ERAP remains active in your state.
Non-Profit Help
Many non-profits help with security deposits and the first month’s rent. They get funding from government grants or donors.
Charitable Organizations
Many charities help renters fight homelessness. They often have limited funds and mostly guide people to local government resources.
United Way
The United Way helps many people in the U.S. find safe, reliable rental housing. It runs the 211 network, which links people to key community resources.
Call 211 or search online by location for resources and contact info.
Salvation Army
The Salvation Army offers emergency services like food, clothing, shelter, and a safe space for everyone.
Contact the Salvation Army for help, but note that services vary by location. They often guide people to other resources instead of giving money.
Catholic Charities
Catholic Charities supports the Homeless Prevention Rapid Re-Housing Program (HPRP), which offers short-term financial help to people who are struggling to keep their rental housing.
Find a local Catholic Charities office that might help. HPRP temporary assistance includes:
- Rental Arrears
- Short-Term Rental Assistance
- Security Deposits
- Utility Deposits and Arrears
Modest Needs
Modest Needs provides short-term financial assistance to individuals and families in temporary crises. Homelessness is an emergency.
Apply for a Modest Needs self-sufficiency grant by registering online. Document the emergency that caused you to seek a new apartment.
Churches
Churches can sometimes help renters with upfront money. However, their benevolence funds are limited as they also support other ministries.
Home Church
Your home church is most likely to help dedicated members with rent challenges. Contact your local pastor or priest first.
Most churches get funds from their members to support their missions. They have limited resources and help those they know first, but it never hurts to ask. They might bless an outsider.
St. Vincent de Paul
Some St. Vincent de Paul (SVdP) locations offer one-time rent help. Their mission is to build a just world through personal service to those in need, and gospel values inspire their activities.
Contact your local SVdP office to see what initiatives they support for low-income families in your area. Volunteer labor is more readily available than direct financial support.
