Should You Take Travel Nurse Agency Housing or Find Your Own?

Travel nurse housing is one of the more difficult aspects of travel nursing. Travel nursing companies typically give travel nurses a choice between company provided housing or a lodging reimbursement. In this article, we’ll cover all the issues travel nurses need to consider when they decide between finding their own travel nurse housing or taking the company’s housing instead.

First, this article does not cover how to find your own travel nurse housing or how to manage agency housing. Please select one of the links below to discover more about those topics.

1. How to Find Your Own Travel Nurse Housing
2. The Ultimate Guide to Travel Nurse Agency Housing

That said, you’ll want to review this article first. This article will help you make the right decision between agency housing and finding your own. Below is a table of contents. Select a link to jump to the topic.

Do Travel Nurses Get Free Housing?

Many travel nursing companies advertise that they provide free housing. However, the housing isn’t actually free. It does of course cost money. In fact, companies will pay that money to the travel nurse if the travel nurse chooses not to take the company’s housing. Companies commonly refer to the payment as a “housing reimbursement”, “lodging reimbursement”, “lodging stipend” or “housing stipend”.

Moreover, it’s fair to say that in many cases travel nurse pay packages are built around the cost of housing. All else being equal, the higher the cost of housing, the lower the pay and vice versa. Additionally, if the actual cost of housing exceeds the budget the company set aside to cover the estimated cost of housing, then many companies will reduce the travel nurse’s pay to cover the additional cost.

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Further still, if you’re an itinerant travel nurse who does not qualify for tax-free reimbursements, then many companies will increase your hourly rate with the money they would otherwise use for housing.

Also, not every company offers to provide travel nurse housing. Instead, these companies only offer the lodging reimbursement.

Therefore, travel nurse housing is a service that agencies provide for a price. This is an important distinction. Ultimately, it gives travel nurses a choice that can have substantial ramifications for both finances and lifestyle. In fact, housing is the single largest expense most people incur.

Reasons To Find Your Own Travel Nurse Housing

You might be wondering why you should even consider finding your own travel nurse housing. After all, most travel nursing companies are willing to find it and pay for it so you don’t have to. Well, industry insiders commonly tout two primary reasons you might want to secure your own travel nurse housing.

Potential for More Choices if You Find Your Own Travel Nurse Housing

First, they argue that you will have more flexibility if you secure your own housing. Simply put, you have the freedom to choose any housing option you want when you secure your own. This is true for the most part.

However, when it comes to traditional apartment rentals, it might be more difficult and expensive for you to secure these properties than it is for the agency. We discuss this issue further below.

On the flip side, if you take company housing, then your choices are confined to the agency’s offerings. Different agencies offer different options. In most cases. agencies stick with traditional apartment rentals or Extended Stay Hotels. Moreover, many agencies do not offer much in the way of choice. Instead, you take what they have available at the time.

That said, some companies do indeed provide flexible housing options. In rare cases, you may find agencies that are willing to explore all housing options, including Airbnb and shared-rentals.

Moreover, agencies sometimes have expertise with housing in certain areas. This can be an advantage. The agency might have established relationships with property managers and service providers like furniture services. As a result, the agency might receive price discounts.

Potential to Save Money if You Find Your Own Travel Nurse Housing

The second common argument for finding your own housing is that you could end up saving money by taking the reimbursement. For example, if you secure lodging that is less expensive than the company’s reimbursement, then you can pocket the difference.

There are additional scenarios in which you can save money when you secure your own lodging. We discuss many of those scenarios and provide examples in this article.

On the flip side, you may end up losing money if you secure your own housing in certain scenarios. For example, some of the largest travel nursing companies in the industry get really great deals on housing. You may end up spending more if you secure the same type of housing they offer. However, this is quite rare.

Now that we know why you might want to consider finding your own travel nurse housing, let’s take a look at the main factors to consider before you make the decision.

How Much Money can You Save by Finding Your Own Travel Nurse Housing?

Of course, money is one of the main factors for you to consider when you decide between company housing and the lodging reimbursement. Essentially, you want to decide if the money you will save by taking the lodging reimbursement is worth the risks and costs of securing your own housing.

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The amount of money you can save if you secure your own housing depends primarily on two factors. The first factor is the type of housing you’re willing to accept. The second factor is your travel nursing agency’s approach to travel nurse housing and housing reimbursements.

These factors come together in many different ways. This makes it difficult to provide a straight answer on how much money you can save. It will depend on your unique circumstances.

We provide several highly detailed examples at the end of this article. However, we want to provide you with some insight early in the article so you have a general idea.

Depending on your unique circumstances, you might save as little as $0 to as much as $2,000 or more per month. That said, our experience indicates that most travel nurses save between $400 and $1,500 per month when they secure their own travel nurse housing.

What Type of Travel Nurse Housing Do You Want?

Next, it’s important to determine what type of housing you’re willing to utilize. This may be the most important factor to consider because your personal housing requirements affect nearly every other housing related factor.

What Type of Housing do Travel Nursing Companies Provide?

Different agencies offer different housing options. Furnished apartments and “extended stay” hotels are the most common options agencies offer. However, some agencies also offer traditional hotels and motels. Others offer vacation rentals and even shared spaces.

Agencies typically offer extended-stays, hotels, and motels for contracts that are less than 10 weeks. In case you’re not familiar, extended-stay hotels come equipped with a kitchenette. Also, it is becoming increasingly common for agencies to offer options from Airbnb, VRBO and Furnished Finder for short-term contracts.

Do Travel Nursing Companies Provide Housing for Your Family and Pets?

If you are traveling with family and/or pets, then you’ll be pleased to know that most travel nursing agencies do offer housing options to accommodate your loved ones. However, it’s important for travel nurses to remember that the cost of company housing does affect the pay package. Essentially, higher housing expenses will result in lower pay all else being equal.

It’s Important to Evaluate Company Housing Options As When Making Your Decision

In any case, it’s important to evaluate agency housing options on a case-by-case basis. Don’t make the mistake of maintaining a blanket housing policy with every agency you work with or even different assignments with the same agency.

Some agencies are flexible. They might present housing options until they find something you like. Other agencies are stringent. They might offer only one or two options.

Similarly, you might receive really good deals on agency housing in some cases and overpriced offers in others. Therefore, you may choose to take agency housing for some contracts and find your own for others.

Similarly, you might choose to work with only those agencies that provide housing options you desire. Of course, this will limit the number of agencies you can work with. It may also limit the travel nursing contracts you have access to.

What Types of Housing Can Travel Nurses Find on Their Own?

When you opt to find your own travel nurse housing, then your options include every housing option that’s available in the given market. However, your time, cost and risk-exposure will vary greatly between options.

For example, let’s say you are open to any and all possible housing options. Perhaps you are even willing to rent a room from someone you find on CraigsList.

By comparison, let’s say you are only willing to accept a private, fully-furnished, one-bedroom apartment. Perhaps you also require a gated community with covered parking.

Each of these scenarios has vastly different ramifications. As a result, your level of flexibility with respect to housing should have a big impact on your choice to take company housing or secure your own.

As we will see, if you are more flexible, then finding your own housing becomes a much more attractive option. However, if you require a fully furnished apartment in a traditional apartment complex, then taking company housing becomes a much more attractive option.

Covering the Cost of Travel Nurse Housing

You also need to consider the monetary costs. Moreover, you need to pay special attention to the upfront costs.

If you choose company housing, then the company will pay all the upfront costs including security deposits and first month’s rent. Typically, pet-deposits are the only upfront housing cost that agencies require travel nurses to cover.

If you secure your own travel nurse housing, then you need to pay all of the upfront costs. Additionally, you may need to pass a credit check in some cases.

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Therefore, your options are limited to what you can qualify for and afford. Of course, costs vary depending on the type of housing.

Travel Nurse Housing Upfront Costs for Share-Rentals

For example, if you are willing to rent a room from someone, then the upfront costs should be quite low. In this case, you might avoid large cleaning deposits and the rent should be much less expensive. Also, you probably won’t need to pass a credit check.

Upfront Costs for Extended Stay

If you’re willing to utilize Extended Stay or Extended-Stay-type hotels, then you need to make sure that you can cover the cost until your first paycheck comes in. That’s because these hotels typically charge your debit or credit card on a weekly basis.

Meanwhile, the agency typically deposits your first paycheck on the second or third Friday of your contract. The date of deposit depends on whether or not the agency pays weekly or bi-weekly.

Upfront Costs for Apartment

If you’re only willing to stay in an apartment, then there are several financial considerations. First, you will most likely need to pass a credit check.

Second, you typically need to pay for the first month’s rent and the security deposit at a minimum. In addition, you’ll need to furnish the apartment which can be quite expensive.

Moreover, it’s important to note that short-term apartment leases typically command a premium. This is because landlords often raise rental prices for anything less than a 6-month lease.

It’s also important to note that “corporate housing” almost always costs to much for travel nurses to even consider. The average cost is $150 per day.

Upfront Costs for Vacation Rentals

Finally, it’s important to know that upfront costs vary for vacation rentals. First, different vacation rental services, like Airbnb and VRBO, have different payment policies.

Moreover, you will often negotiate special payment considerations with hosts on a case-by-case basis. We discuss these issues in detail in our article on how to find your travel nurse housing.

If you cannot finance any of these options or if you are not willing to utilize the options you can finance, then you should take company housing. Perhaps you can save enough money during your first few assignments to cover the upfront costs on future assignments.

How Much Time Does It Take to Find Travel Nurse Housing?

Time is the next factor you should consider when you are deciding between getting your own travel nurse housing or taking the company’s housing. The time you spend will vary by location and the type of housing you’re willing to accept.

Time Involved with Company Provided Housing

If you take company provided housing, then you’ll spend very little time on housing. You might discuss housing options with your recruiter or a housing coordinator. Beyond that, you should spend no further time on housing.

Time Involved with Securing Your Own Housing

If you secure your own travel nurse housing, then you will most likely be on your own. However, some travel nursing companies do offer assistance. Nonetheless, there is no guarantee that the company helps you. Therefore, you should count on being fully responsible.

The more flexible you are, the less time it will take you to locate and secure housing that meets your needs. If you have rigid requirements, then you can end up spending a lot of time on housing. For example, you will quickly find that the vast majority of apartment complexes do not accept anything less than a 6-month lease.

Moreover, it takes longer to find housing in certain locations than others. For example, if you’re looking for a nice, affordable apartment in San Francisco, CA, then you should expect to spend a lot of time searching. The same is true for remote rural areas where lodging options are scarce.

What are the Risks of Securing Your Own Travel Nurse Housing?

Next, it’s extremely important to consider the risks involved with travel nurse housing. Risks include penalties for early termination of a lease, loss of deposit, liability for damages and more.

Risks if You Take Company Housing

If you take company housing, then the company will be responsible for the risks in the vast majority of cases. There are some scenarios in which the agency might try to hold you responsible. Here are some examples:

1. The hospital cancels your contract with cause (poor attendance, refusal to follow protocols, etc).
2. You cancel the contract to return home for a family emergency.
3. You cancel the contract because you feel the assignment is so bad you can’t complete the contract.
4. The property owner charges for property damage.

Obviously, we provided very different reasons for contract cancellations. In some cases, your agency will absorb the costs and in others they will attempt to hold you responsible.

In any case, it’s very difficult for companies to garnish wages to cover such expenses. Often times, companies are willing to absorb these costs, especially if you are a good worker and/or the charges are questionable. And sometimes, companies find that the legal costs of collecting the expenses are more than its’s worth.

The point is that there are many scenarios whereby travel nurses can avoid all housing related financial risks if they take company housing. Please check your travel nursing contract thoroughly to make sure you know about the housing risks beforehand.

Risks if You Secure Your Own Travel Nurse Housing

If you secure your own travel nurse housing, then you are fully responsible for the risks in ALL scenarios. And remember, leases are legally binding documents.

It’s also important to remember that exposure to these risks increases when you engage in travel nursing. This is because the nature of contract-work makes it less stable than permanent employment.

For example, your contract could get cancelled with or without cause. Also, your contract start-date could change for any number of reasons.

Moreover, you will often experience uncertainty as you transition from one contract to the next. Hospitals sometimes wait until the last second to offer contract extensions. Additionally, hospitals sometimes rescind contract extension offers.

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Fortunately, there are things you can do to mitigate these housing risks. For example, if you use Extended Stay Hotels, share rentals, or other unconventional housing options, then you may not be subject to leases. We provide additional tips in our article on finding your own travel nurse housing.

The Risk of Loss when You Take the Travel Nurse Housing Reimbursement?

Next, it’s important to note that there is another financial risk related to the lodging reimbursement itself. Specifically, if you take the housing reimbursement, then it’s much easier for the agency to withhold this money if you do not work.

We need a basic understanding of how travel nurse housing reimbursements work in order to understand this risk. First, travel nursing companies pay the lodging reimbursements on each paycheck.

However, like the rest of the tax-free reimbursements you receive, the lodging reimbursement is not a part of your wage as it pertains to certain legal issues. Instead, your “wage” is comprised of only your taxable hourly rate for certain legal issues.

For example, if you cancel a shift due to illness, then you would expect the agency not to pay your taxable hourly rate. However, in most cases, agencies will also withhold your tax-free reimbursements as well. Essentially, they treat them as hourly wages.

Perhaps more importantly, many travel nursing contracts allow hospitals to cancel a certain number of shifts per contract. In this case, many agencies will withhold both the taxable wage and the reimbursements when hospitals cancel shifts. Be sure to review your travel nursing contract thoroughly to see if such a clause is present.

However, if you take company provided housing, then it is much more difficult for the agency to withhold the value of the housing. In most cases, it won’t be legal for them to garnish your wages. They could withhold other reimbursements, but that’s uncommon.

As a result, if you take company provided housing, then you can end up saving the value of the housing in cases where you miss shifts or get cancelled. You’ll need to check with the agencies you work with to find out how they handle this scenario.

Examples of How Much Money You Can Save by Taking the Housing Reimbursement

Next, let’s take a look at some examples of how much you can save if you secure your own housing.

Different Companies have Different Housing Options

First, it’s important to note that different travel nursing companies handle housing in different ways. Some agencies try to match their lodging stipends to the cost of moderately priced housing in the specified area. Other agencies provide lodging stipends that are higher by comparison.

However, it’s not that one agency is necessarily offering more money than the other. Instead, the agency offering the lower lodging stipend could be offering a higher taxable wage.  You can view our articles on comparing travel nursing pay packages to get an idea of how this all works out.

Small and mid-sized companies tend to offer higher stipends and lower taxable wages. Larger companies tend to offer lower stipends and higher taxable wages.

The amount of money you can save by securing your own travel nurse housing will depend in part on how the agencies you work with handle the lodging reimbursement. If you are going to secure your own housing, then it’s best to work with agencies that offer the highest reimbursements.

However, you always want to make sure that your taxable wage is not so low that it raises a red flag for a tax audit. For more on these issues please review the articles below:

1. Is It OK to Take $10 Per Hour as a Travel RN?
2. Are There Red Flags for the IRS in Travel Nursing Pay?
3. Everything You Need to Know About the Travel Nurse Housing Stipend

Now, let’s take a look at some examples!

Travel Nursing Company with Rigid Housing Option – Lower Reimbursement – Apartment

In our first example, the travel nursing company offers one very basic choice for housing. The agency will provide a furnished 1-bedroom apartment and pay for all the utilities. Or, they will provide a lodging reimbursement of $2,300 per month.

In this case, the amount of money you can save if you secure your own lodging depends strictly on the price of the lodging you’re willing to secure. For example, if you can find acceptable housing for $1,500 per month including utilities, then you will save $800 per month.

If you don’t think you can find acceptable housing for much less than $2,300 per month, then it won’t be worth it for you to secure your own housing.  Remember, you must account for the cost of utilities and other expenses when you calculate your potential savings.

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Large companies, like AMN Healthcare, who get volume discounts on apartments often take this approach. Therefore, if you’re only willing to accept a 1-bedroom apartment, then it’s often best to let them provide the housing. You may not be able to find a better deal on your own.

Travel Nursing Company with Rigid Housing Option – Lower Reimbursement – Extended Stay

In this next example, the company offers a similar basic choice. The company will provide you with an Extended Stay Hotel. Or, the company will provide you with a lodging reimbursement of $1,700 per month.

While this scenario is very similar to the one above, the difference is that the company is offering an Extended Stay instead of an apartment. Again, you can save money if you secure housing that is less expensive than the reimbursement. Unfortunately, you will save less because the reimbursement is lower.

However, you can sometimes get a better deal on an Extended Stay than the company receives. Given that the financial risks are far lower with Extended Stays, it’s worth a try.

You will need to contact the Extended Stays in the area of your contract, request to speak with the manager and let them know you will be there for 60-90 days. They sometimes offer very deep discounts for long term stays.

Companies that focus on “Rapid Response” assignments, like Fastaff, often take this approach to housing.

Travel Nursing Company with Rigid Housing Option – Higher Reimbursement

In this example, the company offers a slightly more complicated choice. Essentially, the company will provide a furnished 1-bedroom apartment that costs less than the reimbursement they are offering. If you choose to take their housing, then they will add the difference between the cost of their housing and the lodging reimbursement to your hourly pay rate.

As we discussed above, the gross value of the pay package does not change. Instead, money is shuffled from one category to another.

As with the other housing examples, you can save money in this scenario if you find housing that is cheaper than the apartment the company is offering. However, you will also save on taxes if you find your own housing.

Let’s take a look at an example. Let’s say the company offers a housing reimbursement of $3,500 per month. Additionally, they tell you that the value of their company housing is $2,500 per month.

If you take their housing, then they will add the equivalent of $1,000 per month to your taxable hourly pay rate. $1,000 is the difference between the cost of their housing ($2,500) and the housing reimbursement ($3,500).

As a result, you’ll pay taxes on $1,000 per month that you wouldn’t have paid if you took the housing reimbursement. This will cost you $250 per month at a modest 25% tax rate. Of course, your results will vary based on your tax rate.

If you find your own housing, then you’ll pocket the $250 that would otherwise go to taxes. Plus, you’ll save additional money if you find housing that costs less than $2,500 per month, which is what the agency is charging for their housing.

This can add up quickly. You can easily save $1,250 – $1,500 per month if you find your own travel nurse housing in this scenario.

Many small to mid-sized companies in the travel nursing industry use this approach to housing. Therefore, you will encounter it quite frequently. It’s the best-case scenario for travel nurses to save money on housing.

Travel Nursing Companies with Flexible Housing Options and Higher Reimbursements

In this example, the company offers you a host of housing options all of which cost less than the reimbursement they are offering. If you choose to take their housing, then they will add the difference between the cost of their housing and the lodging reimbursement to your hourly pay rate.

For example, they may be willing to provide anything between an Extended Stay and a posh townhouse. In very rare circumstances, they may even be willing to provide a share rental.

This scenario changes everything. Essentially, you won’t be able to save money by finding housing that is cheaper than the agency provides because they’re willing to provide anything you want. Therefore, you will only save the value of taxes if you find your own housing in this scenario.

Many small to mid-sized companies in the travel nursing industry use this approach to housing. Therefore, you will encounter it quite frequently. As we demonstrated above, you might pocket anywhere from $250 – $400 per month if you find your own housing in this scenario.

Why Do Different Companies Have Different Travel Nurse Housing Policies?

At this point, it’s totally understandable if you’re confused by all of the different travel nurse housing policies we’ve covered. You might be wondering why all the differences exist. Why can’t the industry simply settle on one policy?

That’s a very loaded question. We’ll provide a brief overview so you have a general idea of the issues at play. We’ll include links to relevant articles if you’d like to become an expert.

Wage Recharacterization and Travel Nurse Housing

“Wage Recharacterization” is one of the reasons that all these polices exist. “The IRS uses the term “Wage recharacterization” to describe employers improperly structuring “compensation so that the employee receives the same or a substantially similar amount whether or not the employee has incurred deductible business expenses related to the employer’s business.” That’s a mouthful!

Essentially, the IRS wants to make sure that employers are not misusing tax-free reimbursements by substituting them for what would otherwise be taxable income. Of course, “housing reimbursements” are tax-free.

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Meanwhile, different companies interpret the wage recharacterization rules in different ways. Hence all the different housing policies.

Larger travel nursing companies typically have investors, stock holders and auditors. Therefore, they typically adhere to stricter legal interpretations of the rules.

Smaller and mid-sized agencies typically don’t have as much oversight. Therefore, they have more freedom to adhere to less stringent interpretations of the rules.

Sometimes It’s Just Easier

Some companies choose ridged lodging policies simply because they’re easier for the company to manage. The ridge policy allows them to standardize their procurement of housing. Moreover, it’s easier for them to explain to their travel nurses.

Volume Discounts

Some companies choose ridged lodging policies because it’s the best way to get volume discounts. If they use the same services all the time, then they’ll do more volume with those services. If the travel nursing company passes those savings to their travel nurses, then they have a competitive advantage.

Better Service

Some companies choose their housing policies based largely on how they believe the policy affects service. For example, some companies believe that flexible housing policies are a better service for the traveler because it gives the traveler options.

The bottom line is that there is nothing nefarious about companies having different policies. Instead, it’s just a matter of them interpreting legal issues differently and making different decisions related to service.

Kudos to you for making it to the end of this article! By now, you definitely know how to evaluate your housing options. Next, you need to know how to manage the various options to ensure you achieve the best results! Select the links below to discover everything you need to know!

1. How to Find Your Own Travel Nurse Housing
2. The Ultimate Guide to Travel Nurse Agency Housing