Travel Nurse Housing Stipend: Maximize Your Tax-Free Income
Understanding Your Housing Stipend
Your housing stipend is likely your largest compensation component, often $1,000-$4,000+ monthly. Unlike your hourly wage, this money is completely tax-free – but only if you understand the rules.
How Housing Stipends Are Calculated
Stipend amounts are based on GSA (General Services Administration) rates for each location. These rates reflect actual housing costs, which is why:
- Los Angeles: $3,000/month
- Nashville: $1,200/month
- Rural Iowa: $800/month
Housing Options and Strategies
Taking Agency Housing
- Pros: No deposits, furniture included, utilities covered
- Cons: Limited choice, potential quality issues, no cost savings
Taking the Stipend
- Pros: Choose your location, potential savings, better quality control
- Cons: Security deposits, utility setup, furniture needs
Maximizing Your Stipend
Research Strategy
- Use Zillow, Apartments.com to understand local rates
- Factor in commute time vs. savings
- Consider utilities, parking, and amenities in total cost
- Look into shared housing with other travel nurses
Smart Choices Sarah, an ICU nurse I placed in LA, received a $3,200 housing stipend. She found a furnished studio for $2,800 near the beach, keeping $400 monthly while living comfortably.
Cost Considerations
- Security deposits (typically 1-2 months rent)
- Utility setup fees and deposits
- Parking costs in urban areas
- Internet installation
Tax Home Requirements
To keep stipends tax-free, you must maintain a permanent tax home where you:
- Pay rent/mortgage and living expenses
- Return between assignments
- Maintain voter registration and banking
- Have family or economic ties
Common Mistakes
Spending Too Little If you consistently spend much less than your stipend, it may raise audit flags. The IRS expects stipends to reflect actual costs.
No Documentation While receipts aren’t required, keep records of housing expenses, lease agreements, and travel between assignments.
Wrong Location Choices Don’t sacrifice safety for savings. Research neighborhoods thoroughly before committing.
Questions for Your Recruiter
- How is this stipend amount calculated?
- What housing options do other nurses choose in this area?
- What happens if my housing falls through?
- Are there areas to avoid for safety reasons?
- How do you support nurses with housing problems?
Red Flags
- Stipend amounts that seem too high for the area
- Agencies that won’t explain how stipends are calculated
- No support for housing issues during assignments
- Pressure to take specific housing options
Making It Work
Your housing stipend can significantly boost your income when managed wisely. The key is understanding local markets, maintaining your tax home properly, and working with a recruiter who provides honest guidance about housing realities in each location.
Remember: the goal isn’t just maximizing savings – it’s finding safe, comfortable housing that lets you perform your best work while building your travel nursing career.
