This Viewpoint examines how loosening federal restrictions on the use of Medicaid funds for housing could benefit the health and quality of life for the homeleless population while also reducing medical costs.

The health care needs and demographics of the homeless population in the United States are well understood. Although housing loss is associated with decrements in health and increased rates of acute care utilization, a small percentage of the homeless account for the majority of the health care resources used. Housing the homeless can improve health: after being placed in permanent supportive housing, homeless adults with AIDS had an 80% reduction in mortality. In addition to improving health outcomes, studies have shown that the savings in health care and incarceration costs can cover the cost of housing and lead to improved quality of life for the homeless population.