Housing is the single biggest expense in most retirement budgets, and for a growing number of retirees, the fix isn’t cutting back — it’s renting out a room they’re not using anyway. House sharing has gone from a niche idea to a mainstream retirement income strategy, and it’s easy to see why once you look at the numbers.

This guide walks through how much you could realistically earn, how to find and screen a housemate safely, where to find formal matching programs, and what the arrangement means for your taxes.

1. Why More Retirees Are House-Sharing

Housing costs ate up 35.7% of retirement spending for Americans age 65 and older in 2023, according to Bureau of Labor Statistics data cited by AARP — averaging roughly $1,787 per month. That’s before groceries, healthcare, or anything else. For retirees living on Social Security and a fixed nest egg, that single line item can make or break a monthly budget.

It’s no surprise, then, that the number of adults 65 and older actively looking for a roommate has roughly tripled over the past decade. House sharing isn’t just about money either — many retirees say having someone else in the home cuts down on isolation and adds a layer of everyday safety.

One frequently cited real-world example: a retiree who rented out her master bedroom for $1,000 a month earned about $120,000 over a decade — money that went straight toward covering property taxes, maintenance, and everyday living costs without touching her retirement savings.

2. How Much Can You Realistically Earn?

There’s no single number that applies everywhere — a spare room in a big city will command a very different rent than one in a small town. The best rule of thumb is to research comparable room rentals in your own area using local rental listing sites, and to check whether your local Area Agency on Aging runs a home-share program with published rate guidance.

To see how meaningful this income can be, it helps to run the numbers on a typical monthly housing budget.

Worked Example: Does $1,000/Month in Rental Income Cover Your Housing Costs?

Let’s use the national average retiree housing cost of about $1,787/month (per the BLS/AARP figures above) and see how a $1,000/month housemate payment stacks up against a typical breakdown of that spending:

Monthly Housing Cost Item	Typical Amount	Covered by $1,000/Month Rental Income?
Mortgage or property tax installment	$700	Yes — fully covered
Homeowners insurance (monthly share)	$120	Yes — fully covered
Utilities (electric, water, gas, internet)	$180	Yes — fully covered
Remaining balance toward maintenance/repairs	$787	$0 left from rental income; comes out of pocket

In this example, a single housemate paying $1,000/month covers the mortgage or property tax, insurance, and utilities combined ($700 + $120 + $180 = $1,000) — leaving the retiree responsible only for the remaining $787 of average monthly housing spending. Over a full year, that’s $12,000 in rental income, or roughly $120,000 over ten years, which matches the real-world example above almost exactly.

Your own numbers will differ based on your mortgage balance, local property tax rate, and utility costs, but this kind of side-by-side calculation is a useful way to see whether a housemate’s rent would meaningfully offset — or fully cover — your fixed monthly housing costs.

3. Finding a Housemate Safely

Bringing a stranger into your home understandably raises safety questions. A few practical screening habits can lower the risk considerably.

• Consider tenants from “caring professions.” Some experienced home-sharers use a simple heuristic: prioritizing applicants who work in teaching, nursing, or public safety, since these roles tend to involve routine background checks and a service-oriented mindset.
• Use a three-step vetting process. Start with a phone interview, follow up with a video tour of the space, and only then move to an in-person meeting. This lets you screen out mismatches before anyone’s home address is shared.
• Collect three references. Ask for a prior landlord, an employer, and a personal reference — and actually call them.
• Run a formal background check. Services like Avail, Checkr, or TransUnion SmartMove can verify identity, criminal history, and credit standing for a modest fee.
• Ask direct lifestyle questions upfront. Smoking, pets, substance use, overnight guests, and desired level of socializing versus privacy should all be discussed before anyone signs anything — mismatched expectations here are the most common source of friction later.

4. Where to Find a Match — HomeShare Programs

You don’t have to rely on general rental listing sites alone. Formal home-sharing matching programs exist in many states and cities specifically to connect older homeowners with vetted housemates. Examples include Home Sweet Homeshare, home-share programs run through local Area Agencies on Aging, and organizations like the New York Foundation for Senior Citizens.

These programs typically handle some or all of the screening themselves, and many are geared toward matches that go beyond rent alone — helping with light household tasks, providing companionship, or simply having someone else in the house in case of an emergency.

5. Tax Considerations

Rental income from a housemate is generally taxable and needs to be reported to the IRS. The good news is that the IRS also allows deductions for “ordinary and necessary” rental expenses tied to the rented space — this can include advertising costs, repairs, a share of utilities, and depreciation, plus a proportional share of property taxes and homeowners insurance based on the percentage of your home being rented out.

If your rental-related expenses exceed the rental income in a given year, those losses may in some cases be carried forward to future tax years. Because the rules around proportional deductions and depreciation can get technical, it’s worth consulting a tax professional or reviewing IRS Publication 527 (Residential Rental Property) before you file.

6. Is House-Sharing Right for You? Key Questions to Ask First

Before you list a room or sign an agreement, run through this quick decision checklist:

• Zoning and HOA rules: Does your local zoning code or homeowners association restrict unrelated adults from sharing a single-family home? Check before you advertise the room.
• Landlord-tenant basics: Do you have a written agreement covering rent, house rules, and notice periods? Will you collect a security deposit? Even informal arrangements benefit from putting terms in writing.
• Benefit eligibility: If you receive Medicaid, Supplemental Security Income (SSI), or live in subsidized housing, rental income or a change in household composition can affect income-based resource limits. Check with your benefits caseworker or a qualified advisor before signing anything.

If you can check “yes” on zoning compliance, you’re comfortable putting an agreement in writing, and a benefits review shows no red flags, house sharing is generally a low-risk way to test whether the arrangement works for your household.

FAQ: House Sharing for Retirees

Is renting out a room in retirement worth the hassle?

For many retirees, yes — a single housemate paying $800 to $1,200 a month can cover a meaningful share of fixed housing costs like a mortgage payment, insurance, and utilities, as the worked example above shows.

Do I have to report housemate rent as income?

Generally yes. Rental income is taxable, though you can typically deduct a proportional share of related expenses. Check IRS Publication 527 or talk to a tax professional for your specific situation.

How do I find a housemate without using a random online listing?

Formal home-share matching programs — run by organizations like Home Sweet Homeshare, local Area Agencies on Aging, or the New York Foundation for Senior Citizens — often handle screening and matching specifically for older homeowners.

Will renting out a room affect my Medicaid or SSI?

It can. Income-based benefit programs have resource and income limits, so it’s important to check with your benefits caseworker before finalizing a house-sharing agreement.