Permanent supportive housing
Last Revised: January 8, 2026
Strategy overview
- Accessing housing first: With record numbers of people experiencing homelessness and chronic homelessness, permanent supportive housing (PSH) plays a critical role in providing immediate housing to individuals and addressing many of the underlying conditions that contribute to homelessness. Based on the Housing First model, PSH programs focus on rehousing homeless individuals as rapidly as possible in secure, deeply affordable accommodations, then connecting them to services like health and behavioral health care, job training, and supports for other essential needs. This evidence-based practice has proven effective at reducing homelessness, improving health outcomes, and achieving cost savings.
- Offering a range of housing models: Support-centered housing models, such as PSH, utilize a range of housing options in response to the challenges of the housing market. Services can be provided at both centralized and scattered sites based on client needs and availability. Centralized housing often includes on-site health and other services, which makes it easier for clients to access healthcare, mental health counseling, and other services. Housing in scattered sites is often more readily available than at centralized locations, and can be beneficial to certain clients, such as families and those re-entering the workforce, because they can be located closer to schools and workplaces, and it also promotes closer integration with the community. Having both options allows for fluidity between the two when a client’s needs change.
- Equipping tenants for success: In most cases, tenants sign a standard rental agreement without conditions beyond those of any other renter and receive a rental assistance component through sources like the federal Housing Choice Voucher Program. It is critical for clients, especially those exiting a cycle of homelessness, to fully understand the terms of a rental agreement, including when rent is due, the grounds for eviction, and the roles and responsibilities of both tenants and property managers.
- Connecting clients to supplemental services: Once clients are successfully housed, they are connected to a wide range of services, such as mental and behavioral health. At centralized housing sites, integrated services may include a federally qualified health center, nursing facilities, pharmacies, substance use treatment, education, legal assistance, and job training. For those living in a scattered site, case managers help individuals connect with a network of service providers, obtain benefits such as Medicaid, and receive information about and access to job training and educational opportunities.
There is strong evidence that permanent supportive housing delivered through a Housing First model is a cost effective approach to reducing chronic homelessness. Several rigorously designed studies indicate that permanent supportive housing improves health outcomes while reducing healthcare spending, and is especially impactful for vulnerable groups such as veterans, individuals with substance use disorder, and individuals living with HIV/AIDS.
A 2024 evidence review by the Urban Institute found that Housing First programs reduce reliance on costly emergency services, yielding annual cost offsets of $6,876 per person based on a program in Denver, CO and a 40 percent reduction in jail time for participants in New York City. Additionally, Housing First has reduced veteran homelessness by 52 percent since 2009 and prevented an estimated 90,000 more veterans from entering homelessness.
A 2024 randomized controlled trial in Denver, CO found that permanent supportive housing using a Housing First approach significantly shifted healthcare usage from emergency services to community-based care. Two years after entry, participants averaged eight more office-based psychiatric visits and three more prescription medications, while experiencing six fewer emergency department visits compared to the control group. Although the program increased engagement with healthcare services, it had no significant impact on mortality rates during the study period.
A 2023 research synthesis of twelve articles evaluating New York City’s New York/New York III permanent supportive housing program found positive impacts in housing stability, physical and mental health benefits, and cost savings of $9,526 per participant in Medicaid expenditures. Outsized impacts were reported for certain groups such as young adults formerly in foster care, who were 52 percent more likely to be in stable housing within two years of permanent supportive housing placement.
A 2023 evidence review by the US Department of Housing and Urban Development highlights that Housing First participants demonstrated an 80 percent housing retention rate, which was 50 percentage points higher than those receiving treatment-as-usual. For individuals with chronic medical conditions, Housing First was associated with a 24 percent reduction in emergency room visits and a 29 percent reduction in hospitalizations, resulting in an annual savings of $6,307 per person. The article also shares how housing first can benefit specific groups such as families experiencing homelessness, domestic violence victims, or individuals living with HIV/AIDS.
A 2023 evidence review by the US Department of Veterans Affairs (VA) found that the Housing First model leads to significantly quicker exits from homelessness and improved housing stability compared to traditional "treatment-ready" models. A 2010 VA demonstration project found that veterans using the Housing First approach experienced a drastic reduction in time to housing placement—from 223 days to just 35 days—and achieved a 98% housing retention rate compared to 86% for those in treatment as usual.
A 2021 systematic review of 26 studies found that Permanent Supportive Housing (PSH) using a "Housing First" approach is significantly more effective at reducing homelessness, increasing housing stability, and improving health outcomes than "Treatment First" models. Housing First programs decreased homelessness by 88 percent and improved housing stability by 41 percent compared to traditional models that require sobriety or treatment before placement. While the impact on general mental health and substance use was similar across models, PSH provided substantial health benefits for individuals living with HIV who saw reduced viral loads and lower mortality rates. Additionally, PSH participants visited emergency rooms 41 percent less and had 36 percent lower hospitalization rates.
A 2021 experimental evaluation of the Denver, CO SIB Housing First initiative found that participants maintained a housing retention rate of 81 percent after two years, participants experienced a 34 percent reduction in police contacts and a 40 percent reduction in arrests, and substance use outcomes improved with a 65 percent reduction in detoxification services.
An evidence review by the National Low Income Housing Coalition found that Housing First programs are cost-effective, with every $1 invested yielding an average societal cost saving of $1.44 through reduced use of emergency rooms, hospitals, and the legal system. This evidence review includes specific programs in Denver, CO and New York City that led to long term benefits for participants.
A 2020 meta analysis found that four evaluations of Housing First demonstrated strong impacts on reducing homelessness and increasing housing stability. However, the analysis also finds that Housing First may lead to greater reductions in inpatient and emergency health care services but may have limited effects on clinical and social outcomes.
A 2020 quasi experimental study of cost and health impacts of permanent supportive housing delivered through the Housing First model found that participants experienced a 17% reduction in total all-cause medical spending within a year, primarily due to a shift from emergency services to community-based care. While mental health service utilization and pharmacy costs increased for the housed group, these expenditures were ultimately offset by the substantial savings generated from reduced emergency and intensive treatment costs.
Before making investments in this strategy, city and county leaders should ensure this strategy addresses local needs.
The Urban Institute and Mathematica have developed indicator frameworks to help local leaders assess conditions related to upward mobility, identify barriers, and guide investments to address these challenges. These indicator frameworks can serve as a starting point for self-assessment, not as a comprehensive evaluation, and should be complemented by other forms of local knowledge.
The Urban Institute's Upward Mobility Framework identifies a set of key local conditions that shape communities’ ability to advance upward mobility and racial equity. Local leaders can use the Upward Mobility Framework to better understand the factors that improve upward mobility and prioritize areas of focus. Data reports for cities and counties can be created here.
Several indicators in the Upward Mobility Framework may be improved with investments in permanent supportive housing. To measure these indicators and determine if investments in these interventions could help, examine the following:
Housing stability: Number and share of public-school children who are ever homeless during the school year. These data are collected by local public school districts.
Safety from trauma: Number of deaths due to injury per 100,000 people. These data are available from the National Center for Health Statistics’ Mortality File and the CDC’s WONDER database.
Access to healthcare: Ratio of residents to primary care physicians. These data are available from the U.S. Department of Health and Human Services’ Area Health Resource File.
Mathematica's Education-to-Workforce (E-W) Indicator Framework helps local leaders identify the data that matter most in helping students and young adults succeed. Local leaders can use the E-W framework to better understand education and workforce conditions in their communities and to identify strategies that can improve outcomes in these areas.
One indicator in the E-W Framework may be improved with investments in this strategy. To measure this indicator and determine if investments in this strategy could help, examine the following:
Access to affordable housing: Ratio of (1) the number of affordable housing units to (2) the number of households with low and very low incomes in an area (city or county). Housing units are defined as affordable if the monthly costs do not exceed 30 percent of a household’s income. Households with low incomes are defined as those earning below 80 percent of area median income (AMI), and very low-income households are defined as those earning below 50 percent of AMI.
- Coordinated entry systems: Coordinated entry systems (CESs), which are mandatory under Continuum of Care (COC) guidelines, are the main gateway to the housing process in which individuals are assessed, prioritized, and placed in PSH. Many of these systems face challenges and constraints as the level of homelessness has grown. To improve efficiency, a CES should be able to track real-time data, free up staff capacity to facilitate systemwide improvements that benefit housing providers and clients, and establish low-barrier processes that lead to faster placement in housing. These systems should be designed to unify stakeholders, including housing authorities, landlords, and the VA, to unlock resources and serve more clients.
- Data management: Housing agencies use Homeless Management Information Systems (HMIS) to collect, manage, and report data on homeless populations, including intake and assessment information and tracking real-time data on system capacity, vacancies, and referral timelines. A well-managed system relies on quality and robust data collection, and information on client demographics, case management, service coordination, and regulatory compliance. There should also be features such as a secure client portal to submit information and documentation.
- Safety, security, and individual needs: All units in centralized-facility PSH programs should have adequate security, including an operable and lockable front door and a front desk person who monitors activity. Interiors should be well-lit, offer clear way-finding, ensure privacy, and also have designated community and outdoor spaces, and provide computer and multipurpose social rooms. In addition, there should be a mixture of unit sizes that allow for changes in a household. They should also be accessible for those with a disability, who are hearing or visually impaired, and who rely on a service animal, among other features of trauma-informed design. There should also be consideration for housing designated for special groups, including seniors, young people, and children in foster care, to accommodate specific needs.
- Client navigators: PSH programs often use client navigators to advocate for and guide clients through the PSH system to overcome barriers to entering programs, providing documentation, securing placement, and accessing services. They also educate clients on tenant rights and responsibilities, advocate on behalf of clients to address landlord issues, and provide ongoing support to ensure clients maintain housing stability. A client navigator in a permanent supportive housing (PSH) program serves as the participant's advocate and guide, helping them overcome barriers to find and maintain stable housing. They bridge the gap between clients, landlords, and various service providers, ensuring seamless access to necessary resources.
- Peer support: A key support mechanism for those experiencing homelessness is counseling from individuals who share a similar lived experience, a model that is used extensively in substance use treatment programs. Peer counselors for the homeless are trained to provide guidance, empathy, and connection to those in need. They build trust with clients to reduce isolation and build confidence and self-respect, and also offer practical assistance and support as they navigate the PSH process.
- Improve tracking: Implementing more reliable and detailed data tracking systems can give housing agencies a clearer picture of the overall homeless population, help staff determine who is being helped and how, and identify gaps in service to specific population groups. This data can inform improvements in operations to ensure that all vulnerable populations are receiving assistance.
- Reduce barriers to entry: For those experiencing chronic homelessness, access to documentation proving eligibility and detailing health conditions can be challenging and is often a significant barrier to program admission. One approach that can be effective in certain circumstances is to simplify and streamline the process by accepting a signed, written statement (known as self-certification) in place of third-party verification to meet PSH requirements.
- Collaborate on eligibility rankings: Because demand for PSH for the chronically homeless often exceeds availability, a vulnerability assessment tool is used by Continuum of Care organizations to rank and prioritize individuals, with those most in need receiving housing first. Assessment is based on a combination of factors, including the overall size of the homeless population, level of vulnerability, and correlation to risk, as well as the requirements of funding sources. The framework surrounding eligibility and prioritization should be transparent, with input from community groups, housing providers, and behavioral health experts, and feedback from clients.
- Individuals with lived experience: PSH services for the homeless are voluntary and made available to clients without preconditions, such as requiring individuals to enter a drug treatment program or receive mental health counseling. It is critical to understand the complex needs of the target population’s lived experience, the conditions that led to their homelessness, and the range of services they may need in addition to stable housing.
- Housing partners: Housing agencies, including city, state, and federal entities that fund the bulk of housing assistance, are responsible for identifying, referring, and placing individuals in supportive housing—and in some cases, managing the housing component. These groups collaborate with a network of landlords and property managers to increase the availability of units and ensure that the property is safe, clean, affordable, and meets housing standards.
- Veterans: Veteran homelessness has reached a record low, but more than 33,000 continue to experience both sheltered and unsheltered homelessness daily, with many suffering from mental illness and substance abuse problems. Coordinated outreach strategies are needed to make veterans aware of resources and support services, such as the National Call Center for Homeless Veterans, and to identify and engage with them on where to find resources. Case managers, working with the VA and the Department of Housing and Urban Development, along with landlords and community groups, connect veterans to stable housing, healthcare, education, and employment services.
- Service providers: To ensure the delivery of integrated services, PSH agencies establish key partnerships with both general health and mental health agencies, public health authorities, hospitals, workforce development programs, nonprofits, and community and faith-based organizations. These groups coordinate funding, share data, make referrals, and monitor access and outcomes as part of an integrated service package.
- Housing advocates: Organizations that advocate for the homeless are essential to formulate and advance policies and legislation to increase funding for PSH and expand the number of supportive housing units. They work with government agencies and other nonprofits to establish and maintain quality standards and build community support and political buy-in to expand services and develop new forms of supportive housing.
- Engage with landlords, developers, and architects: Partnering with landlords and developers is essential to ensuring adequate housing availability, and can help overcome their concerns about financial risks and other challenges associated with privately owned PSH. Also important is establishing communications and trust with landlords, to resolve problems that arise. Engaging with architects allows housing agencies to clearly articulate needs to ensure safety, security, and comfortable surroundings.
- Create a coalition and resource hub: Successful homelessness initiatives require a wide range of core competencies across government agencies, nonprofits, the private sector, and community-based organizations. They must work together to ensure that the entire process functions efficiently, and funding is secured, and housing and placement standards are maintained. A coalition can also develop a centralized resource hub for all the organizations that community residents can access for information about programs and services for the homeless.
- Consider a master lease arrangement: Landlord engagement strategies may include a master lease arrangement, in which the lease is held in the name of a government agency, or a stable nonprofit that leases the entire property. Under this model, the leaseholder (rather than the tenant) is responsible for rent payments and assumes full financial risk. This strategy can increase the number of available units, lower the risk of eviction, and secure a steady revenue stream for the property owner, while increasing the number of available units.
- Invest in technology and data capacity: Housing authorities rely on a Homeless Management Information System (HMIS) to collect client-level data on the provision of housing and services. A recent report notes, however, that most jurisdictions do not have visibility into real-time PSH vacancies. Instead, they often rely on manual systems (such as phone calls and spreadsheets) to track referrals, which increases human error, slows response time, and limits client visibility into the process. Implementing automated tools and technology allows for the frequent collection and the centralizing of real-time data on system capacity and vacancies to increase transparency, accuracy, and efficiency.
- Homelessness: PSH systems need general data on the size of the overall homeless population, available vacancies in supported housing, units offline, and inflows and outflows to shelters to determine patterns and trends toward chronic homelessness. The data, including length of stay, reflect the level of housing stability and will impact the demand for housing and other services, and inform policies on infrastructure, eligibility, and risk factors.
- Placement: Homeless response systems require real-time data on vacancy, referrals, and utilization rates to ensure that individuals are rapidly rehoused. To realize efficient processing, this data should also track the time required from referral to placement and moving in, as well as outcome data on how long an individual stays in PSH, satisfaction rates, and the reasons for leaving when the unit is vacated.
- Interactions with other services: Tracking individual interactions with the services related to PSH provides insight into engagement rates and effectiveness. Examples include if clients are visiting their assigned doctors or going to the emergency room, participating in preventive healthcare programs, and if they are picking up prescriptions and taking medications. This data should also track interactions with the criminal justice system to help individuals resolve legal issues that might affect housing eligibility.
- Housing market: The housing market, particularly the availability of affordable housing, directly impacts local homelessness trends. Data can measure overall housing needs, changes to housing supply, housing costs, and related economic factors. This is vital when developing a housing strategy aimed at increasing investment in affordable housing, a major factor in addressing homelessness.
- Job satisfaction: Housing agencies face staff retention issues due to stress and burnout, heavy workloads, and the lack of adequate tools, technology, and training. Tracking the level of job satisfaction and other work-related issues can help administrators improve conditions for the homeless services’ workforce, advocate for higher salaries, reduce bureaucracy, improve training, and fully automate processes.
Resources
Evidence-based examples
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Outcome Area |
This ranking reflects how these approaches are scored in one of the major government- or philanthropy-led clearinghouse resources. For more: https://catalog.results4americ... |
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Providing condition-free, rapid access to permanent housing for individuals experiencing homelessness
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Stable and healthy families Supportive neighborhoods |
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Affordable rental housing that provides social services on-site or on-site referral services
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Stable and healthy families Supportive neighborhoods |
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Contributors
Cathy Alderman
Cathy Alderman has served as the Vice President of Communications and Public Policy for the Colorado Coalition for the Homeless (CCH) since 2015 and oversees the Education and Advocacy (E&A) Team. The E&A Team is responsible for public/media relations, lobbying activities, social media, publications, community engagement, public outreach, and education. Before joining CCH, she served as the Vice President of Public Affairs for Planned Parenthood of the Rocky Mountains (PPRM) and the PPRM Action Fund, overseeing policy, political, and community engagement work for a four-state region. Cathy received her Juris Doctor from Tulane University Law School and a Master of Science in Public Health from the Tulane School of Public Health in Tropical Medicine. She graduated from Loyola University with a Bachelor's Degree in Philosophy and a minor in Environmental Management.
Nadine Maleh
Nadine Maleh is Principal, Housing Solutions, at the nonprofit Community Solutions. She leads the Housing Systems team in improving the utilization of local resources to close housing supply gaps in communities. The Housing Systems team works directly with the Built for Zero, Real Estate and Policy teams to develop and scale efforts to accelerate access to housing in prioritized communities. Previously, Nadine served as the Executive Director of Capital Projects for the New York City Mayor’s Office of Criminal Justice. In this role, she was responsible for NYC justice-related capital projects, including advancing plans to close the Rikers Island jail. Nadine is an active member in the social justice design community and believes that design can support equitable and healthy communities.
Carin Clary
Carin Clary is the Director of Homelessness and Housing at the Government Performance Lab (GPL), where she leads a team supporting State and local governments to prevent households from becoming homeless in the first place and make the rehousing process more efficient, effective, and equitable. GPL supports localities’ progress in reducing homelessness through the alignment and coordination of systems beyond homeless response agencies to create broader local ownership of the problem of, and solutions to homelessness. Before joining the GPL, Carin was the Assistant Deputy Commissioner for New York City’s Human Resources Administration’s (HRA) Office of Supportive and Affordable Housing. In this position, she directed NYC’s largest referral and placement system for homeless households into a continuum of publicly supported housing, coordinating over 20,000 referrals annually, and sat on the NYC Continuum of Care Steering Committee for Coordinated Entry and Placement Services. She led the pilot and subsequent expansion of NYC’s master leased housing program, expanding the City’s stock of permanent affordable housing. Before HRA, Carin was a Senior Advisor for the Deputy Mayor for Health and Human Services, serving as chief agency and policy liaison for the NYC Dept. of Homeless Services and Human Resources Administration, with a combined annual budget of over $15B, serving over 3M New Yorkers per year. She is currently based in New York, where she earned her BA in Individualized Study from New York University.