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Security deposit and/or first and last month’s rent assistance


Some low-income households lack the accumulated savings needed to cover a security deposit and any required prepaid rent, such as first and last month’s rent. These obstacles may make it difficult for homeless households or individuals seeking to escape domestic violence to access rental housing or for households to move to a better unit or a neighborhood offering better schools or other desired features.

An inability to afford a security deposit and prepaid rent may also leave households that receive a housing choice voucherOfficially known as "Section 8 Housing Choice Voucher". It is the largest and most sought after housing program in America. Section 8 HCVs are managed by various public housing agencies (most commonly referred to as housing authorities), which falls under the supervision of HUD. Program participants typically pay 30% of the rent, and the rest is covered by the HCV. unable to use their voucher to rent a unit in their preferred neighborhood, or even to use the voucher at all. Some jurisdictions offer financial assistance to help cover these costs, as grants paid directly to the landlord or as low- or no-interest loans that the tenant must repay. In some cases, assistance also helps to cover utility start-up costs or other expenses associated with a new home. Recipients may also be eligible to receive additional supportive services and case management.


Public agencies and private organizations that provide security deposit and/or first and last month’s rent assistance commonly provide the assistance as a grant paid directly to the landlord. However, assistance can also be structured as a low- or no-interest loan to the tenant, payable to the sponsoring organization in installments or in full after a certain period of time. States and local jurisdictions usually fund security deposit and first/last month’s rent assistance programs with federal block grant programs such as Community Development Block GrantA federal program established as part of the Housing and Community Development Act of 1974. It funds various community development activities for neighborhood revitalization, economic development, affordable housing, and better community facilities and services., HOMEFederal program established by Congress in 1990 that is designed to increasing decent affordable housing for low- and very low-income families and individuals. State and localities receive HOME fund from HUD each year, and spend it on things such as: rental assistance, assistance to homebuyers, new construction, rehabilitation, improvements, demlition, relocation, and administrative costs., or the Emergency Solutions Grant program (for people who are homeless or at risk of becoming homeless). Housing trust fund proceeds and other locally-generated funds may also be used.

In some cases, program sponsors do not provide direct assistance at all, but instead work closely with property owners to create affordable alternatives to up-front payments of the security deposit or first and last month’s rent. For example, program staff may negotiate with landlords on behalf of lessees to allow the security deposit to be paid in monthly installments along with the rent, while the organization provides a guarantee during the pay-back period (typically 6 to 12 months).


Assistance can be structured to cover a variety of costs associated with beginning a new tenancy. Most commonly, programs help to pay for the security deposit and/or first and last month’s rent. While households may be able to afford one month’s rent, the combined total of these payments can create a barrier for prospective renters who have limited accumulated assets. Other types of activities that may be supported, either in addition to or instead of security deposit and rent payments, include:

  • Rental application fees
  • Move-in fees
  • The cost of a new lock and key
  • Start-up costs or deposits for utilities
  • Moving expenses
  • The purchase of new furniture

In some cases there may be additional limitations on how the assistance can be used – for example, recipients may be restricted from using funds for moves to locations outside of the awarding jurisdiction, or may need to use the assistance within a specified timeframe once it has been awarded.

In addition to financial support, some agencies and organizations provide supportive services and case management to help households remain in good standing and avoid future rent crises or housing instability. These types of services may be particularly beneficial for families at risk of homelessness or program participants who formerly experienced chronic homelessness and are transitioning to their own home.


Eligibility for this type of program is typically limited to low-income or very low-income individuals and families who can show that they are also able to maintain rent payments after one-time assistance has been provided. Compliance with this requirement may mean demonstrating that the proposed rent level does not exceed a specified amount and/or share of household income (e.g., 30 to 50 percent, depending on the jurisdiction). Households who receive housing choice vouchers will often be able to comply with these limits. Other applicants may face greater difficulty, unless their challenges are related to a short-term situation (such as an unexpected medical bill) that has since been resolved. Programs may also have certain lease provisions, such as requiring a 12-month term or excluding prohibited lease terms associated with HOME or other federal programs. Applicants may need to provide a copy of the rental agreement or unit offer that indicates applicable terms and the amount owed up-front.

With limited program funds, some programs focus on or give priority to specific populations, including women fleeing domestic violence, individuals and families who are at imminent risk of homelessness or leaving homeless shelters or transitional housing (often with a referral from a service provider), or people with disabilities. Other programs provide security deposit and other forms of assistance in connection with housing mobility programs that help renters access resource-rich areas. Program eligibility may also be limited to households who are already residents of the jurisdiction. The amount of assistance available to each household on a one-time basis is usually capped, and programs may also limit the number of times that a household can receive assistance over a specified period (e.g., one time per year, up to $3,000 in assistance over a five-year period, etc.).


  • Washington DC’s Emergency Rental Assistance Program (ERAP) is sponsored by the Department of Human Services and managed by private non-profit and philanthropic organizations. ERAP provides assistance with security deposits and first month’s rent for new renters, as well as help paying rent arrearages and court fees for tenants facing eviction. Eligibility is limited to residents of the District of Columbia whose income is below 125 percent of the monthly federal poverty level, and households may receive assistance one time in a twelve-month period. Security deposit and first month’s rent payments are limited to $900 apiece, payable directly to the landlord.

Related resources

Local examples

  • Finally Home Guidelines, Housing Trust of Silicon Valley (2017) – This guidebook is oriented towards local partners implementing the Finally Home program, which provides one-time security deposit assistance to individuals and families. The guidebook includes detailed descriptions of eligibility guidelines, the application process and program requirements and obligations for partner agencies.
  • Rental Security Deposit Program, City of Virginia Beach – This memo provides a detailed description of a security deposit assistance program provided by the Virginia Beach Department of Housing and Neighborhood Preservation, including eligible households, program conditions, and requirements for properties that may be rented.
Additional Resources

Administering agencies

Local department of housing and community development or department of human service

Non-profit partners

Policy objectives

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