Relocation assistance: Programs, eligibility and how to apply

What is relocation assistance?

Relocation assistance may help low-income people manage common moving costs, such as renting a truck, packing supplies, or paying the security deposit on their next place.

In some cases, you could receive money up front to pay those costs as they come. In others, you may be reimbursed after you move.

What relocation assistance can cover

Relocation assistance can cover several of the different costs related to moving to a new home. Some expenses covered include:

• Rent
• Packing materials
• Movers
• Truck rentals
• Storage units
• Travel expenses
• Utility setup

How much you pay for these services depends on the amount of stuff you have to move and the distance you’re moving. If you’re buying a home on the other end of your move, you will need to consider how long it takes to close on a home.

For example, the U.S. General Serviced Administration estimates the cost of moving 100 pounds of household goods between 501 and 1,000 miles as $201.90. For a move across the country that is over 2,500 miles, the cost is $250.20 per 100 pounds.

Upfront payments vs. reimbursement

Depending on the program you’re using for relocation assistance, you may get help in the form of upfront payments or reimbursement.

In general, upfront payment is the better of the two options. With an upfront payment, you get the moving assistance in cash and you’re free to use it as you see fit for approved expenses. You never have to spend money out of your own pocket. In other cases, you don’t see the money directly, and the moving assistance organization pays your movers directly.

With reimbursement, you need to cover the cost of moving using your own funds. You then submit receipts to the organization providing your moving assistance. If approved, you then get paid back for the money you spent. Depending on your financial situation, you could put yourself in a financial pinch by having to pay for moving costs out of pocket and waiting for reimbursement.

You should check with the tax professional to find out if any of your moving expenses are tax deductible.

Who qualifies for relocation assistance?

Eligibility usually depends on your income level, family size, and how far you're moving.

In some instances, aid may depend on circumstances such as whether you're moving to take a new job, you've been evicted, or you need to move out of an unsafe home.

If you’re preparing for a transition, checking out practical moving tips also can help you cut down on costs.

Moving assistance requirements also vary depending on the program and your location. For example, the Los Angeles Housing Department offers relocation assistance to renters who lose their housing and whose income is 80% or less of the area median income.

Common eligibility factors

If you’re moving for work, your employer might provide moving assistance as an incentive to take the job. If you’re applying for assistance from a government agency or nonprofit, you’ll likely have to meet a number of eligibility requirements.

Some common qualifying factors include:

• Income level. Many programs have an income maximum based on the area median income, which is the typical income in the area you’re moving to. Usually, these programs are intended to help low-income people move.
• Family size. Some programs will base the maximum income levels on family size. People with larger families may qualify with higher incomes than single people.
• Current and destination cities. If a moving assistance program is operated by a local government, you may only be eligible if you’re moving to a specific city or from a location far enough away.
• Renter or homeowner status. Some programs limit eligibility based on whether you rent or own your home.
• Program-specific requirements. Programs can also set specialized requirements. For example, moving assistance from the VA is only available to qualifying veterans, and programs operated by the USDA are intended to help people in rural areas.

Qualifying reasons for a move

In order to receive moving assistance, you may need to be moving for a specific reason. Qualifying reasons will vary by program, but common ones include:

• Foreclosure or eviction. If your family is facing homelessness due to foreclosure or eviction, you may qualify for need-based programs.
• Loss of utilities. Loss of utilities, especially heating utilities in cold weather, can be a qualifying reason to move.
• Unsafe living space. People who are unsafe where they live, for example due to domestic violence, can often qualify.
• New job. Some programs aid with moving to a new area for people who need to move for work.

Types of relocation assistance

There are many different types of relocation assistance programs, each of which applies in different scenarios.

Government and displacement programs

In some cases, people can be displaced by government projects or public works. For example, if the government uses eminent domain to seize your home and use it for a purpose like a highway or if an apartment you’re living in needs to be demolished.

Under the Uniform Relocation Assistance Act, people displaced by certain federal government action receive payment for “reasonable moving expenses” or a moving expense allowance. Many states have also enacted similar laws.

Emergency and hardship grants

Some programs, including state and local programs, can offer emergency assistance to low-income people facing housing instability, victims of domestic violence, or others who need to move due to an emergency. Assistance often helps cover deposits and initial rent to give the person moving a chance to recover from the emergency.

Nonprofit relocation assistance

Many charities and nonprofits offer relocation assistance, though reasoning and eligibility vary significantly from one organization to another. After you reach out to a nonprofit for help, expect to have to submit an application and work with a counselor or case manager throughout the moving process.

Workforce relocation programs

Some states have agencies that help people move to a new home if they receive a verified job offer.

For example, the Workforce Innovation & Opportunity Act provides federal funds to state governments to provide career services and assistance to people seeking work. Many states use some of those funds to support people moving for work. In Alabama, people moving more than 75 miles to take a job with a new employer may be eligible for assistance.

Employer relocation packages

Some employers offer relocation packages as an incentive for people to accept a job in a new area. The assistance offered can vary significantly from company to company.

For example, one company may simply offer a lump sum of cash for you to use as you see fit. Another may reimburse you for specific costs up to a set limit. A third could offer transportation, temporary housing, and hire movers on your behalf.

If you’re considering taking a job in a new area, there’s no harm in asking your prospective employer if they offer a relocation package.

Government relocation assistance resources

If you're wondering how to get money to move, federal and state-funded programs are available to provide help for low-income households.

Below is a list of moving grants or loans available to help ease the financial burden.

Rural Housing Service

The Rural Housing Service is a program from the U.S. Department of Agriculture that provides grants and relocation loans for individuals and families living in rural areas. The agency partners with nonprofit organizations and agencies to provide grants and loans for moving costs, security deposits, and other related expenses.

Veterans Affairs relocation assistance

The Veterans Affairs Relocation Assistance program provides relocation courses and resources for veterans returning to civilian life. In addition, the VA’s Supportive Services for Veteran Families program provides financial assistance for very low-income veterans and their families, including help with moving expenses, security deposits, rent, and utilities.

Federal relocation assistance

The Federal Relocation Assistance program supports those who need to move because their home was acquired or demolished. Through the Uniform Relocation Assistance Act, the program helps with transportation costs, moving, and related expenses, such as packing, establishing utilities, and security deposits. It also provides aid for replacement housing payments if you owned your home.

HUD programs and Emergency Solutions Grants

HUD maintains a database of federal and state home buying assistance programs, including down payment assistance, relocation help, and rental support.

FEMA disaster relocation help

The Federal Emergency Management Agency offers moving assistance for people who have been affected by a federally declared disaster, such as a tornado.

Charitable and nonprofit moving assistance programs

Government moving assistance programs aren’t the only sources of support. These groups often provide grants, counseling, or direct financial assistance.

Catholic Charities USA

Catholic Charities USA provides housing support through counseling, grants for rent payment, and programs that help with moving costs or relocation. Local branches also may help with security deposits and housing stability case management to keep tenants from becoming homeless.

The Salvation Army

The Salvation Army offers short-term rental assistance and other supportive services. For many families, this includes help with rent arrears, deposits, application fees, and – in some regions – moving costs.

YWCA

Many local branches of the YWCA provide financial assistance for low-income people that can include security deposits, utility setup costs, and transportation assistance. In some regions, transitional services may also help with moving or relocation expenses.

Housing Industry Foundation

The Housing Industry Foundation offers emergency housing support through its Emergency Housing Fund in San Mateo and Santa Clara counties in California. Grants up to $2,500 can help low-income individuals and households with back rent, security deposits, and utility costs during unexpected financial setbacks. Funds are distributed via local partner agencies, with payments made directly to landlords or utility providers.

Modest Needs

Modest Needs is a nonprofit helping low-income families and individuals who don’t qualify for other assistance. Their Self-Sufficiency or Bridge Grants can cover emergency expenses, including moving or relocation costs, when those are approved expenses. Grants are typically one-time, paid directly to landlords, moving companies, or other service providers. 

How to apply for relocation assistance

If you’re looking to receive relocation assistance, follow these steps to apply.

Check program requirements

The first thing you need to do is check the program requirements for the relocation assistance program you’ve selected to make sure you qualify. Look for requirements such as:

• Location of the move
• Income maximums
• Reason for moving

Keep in mind that many programs have additional requirements, so be sure to read the fine print to ensure you’re eligible.

Gather documents

Once you’ve confirmed your eligibility, the next step is to gather any documents you need to submit with your application.

Typically, you’ll need to provide proof of identity, such as a driver’s license or passport. Different programs will also ask for other documents. For example, you might need proof of income in the form of a paystub or a letter indicating impending foreclosure or eviction if the program is for people facing housing instability.

The program should provide a list of documents needed, so check to make sure you have what you need.

Submit your application

The next step is to submit your application. Often, you can apply online but check with the organization offering assistance to see how best to apply.

Ask what happens after approval

Once you’ve applied and been approved, make sure you understand how the process works. Ask whether assistance is upfront, comes in the form of reimbursement, or is paid directly to movers and landlords so you know what to expect.

FAQ

Before applying for relocation assistance, make sure you understand how it works.

What qualifies you for relocation assistance?

How to qualify for relocation assistance will depend on the program you’re applying for, but common factors include: income, household size, location, reason for moving, housing instability, employment, displacement, or disaster.

How to get money for relocation?

You can get money for relocation by checking with local government agencies and relief programs as well as housing nonprofits. If you’re moving for work, check if your employer offers relocation packages.

What states will pay you to relocate?

Some state agencies and emergency relief programs may offer help with moving, but eligibility will depend on why you’re moving and where you’re moving to. Check with the state government where you’re moving to see if any assistance is available.

Can I get money to help me move?

Yes, you may be able to get money to help you move if you meet eligibility requirements, such as income maximums or moving for the correct reason.

Can relocation assistance cover out-of-state moves?

Yes, relocation assistance can cover out-of-state moves, but requirements can vary by program, so be sure to check the fine print before you apply.

How can I negotiate relocation assistance with an employer?

If you have to move for work, you may be able to ask your employer to offer a relocation package. You can always negotiate and ask for assistance with moving costs, temporary housing, transportation to the new area, and help finding a longer-term home.

The bottom line

Moving can be expensive, but programs exist to make it more affordable and easier to manage, especially for low-income households. If you’re considering buying a home on the other end of your move, you may want to use Rocket Mortgage’s rent vs. buy calculator to discover the solution that’s right for you.

If you’re unsure where to start, government programs like HUD, FEMA, and ESG, as well as nonprofit organizations such as Catholic Charities, Salvation Army, and Modest Needs, provide multiple ways to get help with moving costs and housing stability. Some programs even offer relocation grants or direct financial assistance, while others provide counseling and resources to guide you through the process.

If you’re ready to make a move and looking to buy a home, you can reach out to Rocket Mortgage and apply for a loan today.