Low Income Assisted Living for Seniors: Programs That Help Pay and How to Find a Place

What assisted living is and what it costs

Assisted living is a home-like residence for people who need help with daily tasks but do not need round-the-clock nursing. Residents usually have a private or shared apartment or room. The community provides meals, housekeeping, medication reminders, and hands-on help with bathing, dressing, and moving around. States license these residences, and the names vary: assisted living facility, residential care home, personal care home, or adult foster care.

It costs less than a nursing home, but it is still expensive. The CareScout Cost of Care Survey, published by the long-term care insurer Genworth’s CareScout unit, reports these 2025 national medians:

These are national medians from a private survey, not prices you will be charged. Costs in rural areas and smaller residential care homes are often lower, and costs in large cities are often higher. Low-income residents usually pay through a mix of their own income, such as Social Security, plus one or more of the programs below.

Medicare and assisted living

Many families assume Medicare will pay. It will not. Medicare.gov says plainly that Medicare does not pay for long-term care, which it also calls custodial care. Assisted living falls into that category. Medigap supplement policies do not cover it either.

Medicare still matters while you live in assisted living. It keeps covering doctor visits, hospital stays, prescription drugs through Part D, and some home health or therapy services, the same as if you lived at home. What it does not cover is the monthly rent and personal care charge.

To understand how the two big health programs differ, see our guide what is Medicare vs Medicaid.

Medicaid waivers and personal care services

Medicaid is the largest public payer of long-term care. Every state covers nursing homes, but assisted living coverage is optional and varies by state. Most states pay for at least some assisted living services through home and community-based services, most often through HCBS waivers (also called 1915(c) waivers) or a state plan personal care benefit.

What Medicaid pays for, and what it does not

Medicaid can pay for the care part of assisted living: help with bathing, dressing, medications, and similar services. Federal rules stop it from paying for the housing part. Under 42 CFR 441.310, federal matching funds for HCBS waiver services are not available for the cost of room and board, with narrow exceptions such as some respite care. That means the resident usually pays rent and meals from their own income, often Social Security or SSI.

Who qualifies

Each state sets its own rules, but most waivers require that you:

• Meet the state’s Medicaid income and asset limits. Many states use a special income limit for long-term care, which federal rules allow up to 300% of the SSI benefit. With SSI at $994 in 2026, that works out to $2,982 a month in states that use the full amount.
• Need a nursing home level of care, as decided by a state assessment.
• Live in an assisted living residence that has a Medicaid contract. Not every residence accepts Medicaid.

Waivers often have enrollment caps and waiting lists, so apply early. Your state Medicaid office or Area Agency on Aging can tell you which waiver covers assisted living in your state. Our Medicaid guide covers the basics of applying.

SSI and state supplementary payments

Supplemental Security Income pays a monthly benefit to people 65 and older, blind, or disabled who have very low income and assets. In 2026 the federal SSI payment is $994 a month for one person and $1,491 for a couple.

Many states add their own money on top, called a state supplementary payment. Social Security’s policy manual, POMS SI 01401.001, explains that states can set supplement levels that vary by living arrangement. In practice, several states pay a higher supplement to people living in assisted living, residential care, or adult foster homes, which helps cover room and board that Medicaid cannot.

Supplement amounts, names, and rules are different in every state, and some states pay nothing extra. Ask your local Social Security office or your state human services agency whether your state pays a supplement for assisted living and how much. If you receive SSI, tell Social Security when you move, since your payment may change.

VA Aid and Attendance for veterans and survivors

Veterans with wartime service and limited income may qualify for a VA pension. When a veteran also needs help with daily activities, the VA adds an Aid and Attendance amount. The VA Aid and Attendance page says you must already qualify for the pension and meet at least one of these:

• You need another person’s help with daily activities such as bathing, feeding, or dressing.
• You stay in bed, or spend much of the day in bed, because of illness.
• You are a nursing home patient because of a disability.
• Your eyesight is very limited (5/200 or worse in both eyes, or a visual field of 5 degrees or less).

The VA pension rates page lists these maximum yearly amounts for the year starting December 1, 2025:

The VA pays the difference between your countable income and the maximum rate. Unreimbursed medical expenses, which can include some assisted living care costs, may lower your countable income. Surviving spouses of wartime veterans can also apply for a survivors pension with Aid and Attendance, at different rates. To apply, use VA Form 21-2680 with a medical examiner’s section, or apply online. Free help is available from accredited veterans service officers. Never pay anyone to file a VA claim for you.

PACE: all-inclusive care for people 55 and older

The Program of All-Inclusive Care for the Elderly, or PACE, covers medical care and long-term services through a single local team. Medicare.gov says you can join if you are 55 or older, live in a PACE service area, need a nursing home level of care as certified by your state, and can live safely in the community with PACE’s help.

PACE covers everything Medicare and Medicaid cover, plus other care the team decides you need, such as home care, transportation to the PACE center, therapy, and prescriptions. If you have Medicaid, you pay no monthly premium and no copays for approved care. PACE is offered only in some states and some areas. In certain programs, PACE can provide services to members living in assisted living, but you generally still pay room and board. Ask the local PACE organization how it works there.

HUD senior housing with supportive services

For seniors who need light help rather than full assisted living, federally subsidized senior housing can be a lower-cost option. HUD’s Section 202 Supportive Housing for the Elderly program funds apartments for very low-income households with a member 62 or older, and many buildings have a service coordinator who connects residents to meals, housekeeping, and personal care. Rent is generally based on income.

HUD has also funded an Assisted Living Conversion Program that helps owners of eligible HUD-assisted senior buildings convert units into licensed assisted living. If a nearby Section 202 building has converted, it may offer assisted living at a lower cost than private residences. Availability is limited, and waiting lists are common. See our guide to low income senior housing to search and apply.

Payment sources side by side

Finding low income assisted living for seniors near you

The best first call is free. The Eldercare Locator, a federal service, connects you by phone or text at 1-800-677-1116 to your local Area Agency on Aging. That office can explain your state’s Medicaid waiver, list residences that accept Medicaid, and help with applications.

Other useful contacts:

• Your state Medicaid agency, for the waiver application and level-of-care assessment.
• Your state assisted living licensing office, which lists licensed residences and inspection reports.
• The long-term care ombudsman in your state, a free advocate for residents of care homes.
• A county veterans service officer, for VA pension and Aid and Attendance claims.
• 211, for local senior services and short-term help.

When you call residences, ask first whether they accept Medicaid, how many Medicaid beds they have, and whether a current private-pay resident can switch to Medicaid later without having to move.

How to compare costs and contracts

Prices are hard to compare because communities bill in different ways. Ask each one for a written price list and the resident agreement, then compare:

• Base rate: what the monthly fee includes, such as meals, housekeeping, laundry, and utilities.
• Care levels: many communities add charges as care needs rise. Ask how they assess needs and how often.
• Medicaid rate and room and board: if Medicaid pays for care, ask what you owe for room and board and whether it fits your monthly income.
• Entrance or community fees: one-time fees can be large. Ask whether they are refundable.
• Rate increases: how much notice you get before prices go up.
• Discharge rules: when the community can ask a resident to leave, such as when care needs grow or money runs out.

Read the contract before signing, and ask the ombudsman or a legal aid office to review anything unclear. Never sign over property or a bank account without independent advice.

Benefits that stretch a fixed income

Other programs will not pay for assisted living directly, but they can free up money for it:

• Medicare Savings Programs can pay the Part B premium ($202.90 a month in 2026) for people with low income.
• Extra Help lowers prescription drug costs under Medicare Part D.
• SNAP can help seniors still living at home. SNAP rules for people in group living settings depend on the type of residence, so ask your state SNAP office.
• Unclaimed money such as old bank accounts or insurance refunds can be searched for free through your state treasury.

Our guide to free government assistance for seniors living at home covers in-home help that can delay or avoid a move.

Planning a move, step by step

1. Call the Eldercare Locator at 1-800-677-1116 to reach your Area Agency on Aging.
2. Get a care needs assessment, which most Medicaid waivers require.
3. Apply for Medicaid and ask to be added to the waiver that covers assisted living.
4. Check SSI and state supplements with Social Security.
5. If a veteran or surviving spouse, apply for the VA pension with Aid and Attendance.
6. Ask about PACE if a program serves your area.
7. Tour residences that accept Medicaid, and compare price lists and contracts.

Related guides

• Low income senior housing
• Housing for seniors on Social Security
• Grants to help the elderly
• Medicaid: who qualifies and how to apply

Frequently asked questions

This guide is general information. Medicaid waiver coverage, state supplements, and licensing rules differ by state and change over time. National Relief Program is an independent website and is not affiliated with Medicare, Medicaid, the VA, or any government agency.