If you're considering a travel nursing assignment or comparing agencies, understanding how housing stipends work can make a significant difference in your take-home pay. This guide breaks it all down with clear explanations and real-world examples.
What Is a Travel Nurse Housing Stipend?
A travel nurse housing stipend is a non-taxed allowance provided to cover temporary living expenses while working an assignment away from your permanent residence.
Instead of the agency arranging housing for you, the stipend gives you cash so you can choose where and how you live — such as an apartment, extended-stay hotel, or shared housing.
When structured correctly, housing stipends are not subject to federal income tax, which can substantially increase net income.
How Travel Nurse Housing Stipends Work
Housing stipends are usually paid weekly as part of your paycheck. The amount depends on several factors, including:
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Assignment location
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Length of contract (typically 13 weeks)
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Local cost of living
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Government per-diem limits
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Agency compensation structure
To qualify for a tax-free stipend, you must maintain a permanent tax home and duplicate housing expenses during your assignment.
Housing Stipend vs. Agency-Provided Housing
Travel nurses usually choose between two options:
1. Housing Stipend
You receive cash and arrange your own accommodations.
Pros
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More control over where you live
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Potential to save money if housing costs less than the stipend
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Greater flexibility for families or pets
Cons
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You handle leases and utilities
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Requires upfront costs
2. Agency-Provided Housing
The agency secures and pays for housing.
Pros
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Minimal effort
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No deposits or utility setup
Cons
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Less choice
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No chance to pocket unused funds
Many experienced travel nurses prefer stipends for the flexibility and savings potential.
Real Examples of Travel Nurse Housing Stipends
Example 1: Urban Hospital Assignment
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Weekly housing stipend: $1,200
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Monthly stipend total: $4,800
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Nurse rents a furnished studio for $3,600/month
Result: Nurse keeps $1,200 tax-free over the month.
Example 2: Mid-Size City Contract
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Weekly housing stipend: $900
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Monthly stipend total: $3,600
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Shared apartment cost: $2,400/month
Result: Nurse saves $1,200 while still living comfortably.
Example 3: High-Demand Seasonal Assignment
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Weekly housing stipend: $1,500
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Monthly stipend total: $6,000
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Short-term rental cost: $5,500/month
Result: Minimal surplus, but prime location and convenience justify the cost.
These examples show how choosing housing wisely can directly impact your net earnings.
Is the Housing Stipend Taxable?
In most cases, no — as long as you meet IRS requirements:
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You maintain a permanent residence
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You incur duplicate living expenses
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Your assignment is temporary (not exceeding one year in the same location)
If these conditions are not met, stipends may be taxed. Consulting a tax professional familiar with travel healthcare is strongly recommended.
How Agencies Calculate Housing Stipends
Agencies typically base stipends on federal per-diem rates for lodging in a specific area. However, agencies may allocate compensation differently between hourly pay and stipends.
This is why two agencies can offer different take-home pay for the same job — even if the total package looks similar.
Can You Negotiate a Travel Nurse Housing Stipend?
Yes, in many cases you can.
Negotiation strategies include:
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Asking for a higher stipend instead of hourly pay
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Declining agency housing to unlock the stipend
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Comparing multiple offers for the same location
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Timing assignments during peak demand seasons
Always review the full compensation breakdown before accepting an offer.
Common Mistakes to Avoid
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Not maintaining a tax home
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Spending the stipend without keeping housing records
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Choosing overpriced short-term rentals
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Assuming all stipends are automatically tax-free
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Failing to compare agency pay structures
Avoiding these mistakes protects both your income and compliance.
Is a Housing Stipend Worth It?
For most travel nurses, housing stipends are one of the biggest financial advantages of travel nursing. When used strategically, they can significantly increase take-home pay while offering flexibility and comfort.
The key is understanding how they work — and choosing housing that aligns with your financial goals.
A travel nurse housing stipend isn't just a benefit — it's a powerful income tool. By understanding eligibility rules, comparing agency offers, and making smart housing choices, travel nurses can maximize earnings without sacrificing quality of life.
Whether you're new to travel nursing or looking to optimize your next assignment, mastering housing stipends puts you in control of your finances.
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