Travel nursing involves registered nurses taking temporary contracts, typically 8 to 26 weeks, in facilities across the country to fill staffing shortages. The compensation package must account for the temporary relocation required for the work. Travel nurses are generally provided with either housing accommodations arranged by their staffing agency or a financial stipend to cover temporary living expenses. Understanding the differences between these two options is necessary for maximizing the financial and logistical aspects of a travel nursing career.
The Two Primary Housing Options
When a nurse accepts an assignment, they choose between two methods for securing temporary housing. The first is agency-provided housing, often called corporate housing, where the staffing firm handles all administrative and financial logistics. The alternative is the housing stipend, a non-taxable financial allowance also known as a per diem. This decision influences the nurse’s net compensation and shifts the responsibility for finding and managing the temporary residence to the individual. Choosing the stipend offers greater financial flexibility but requires the nurse to coordinate their own housing.
Agency-Provided Housing
Opting for agency-arranged housing removes the logistical burden from the travel nurse. The agency typically secures a fully furnished apartment, often in an extended-stay hotel or corporate housing complex, for the contract duration. This arrangement usually includes all utilities, such as electricity, water, and internet, allowing the nurse to move in immediately. The main benefit is the effortless transition, eliminating the search for a short-term rental in an unfamiliar city.
While the agency aims for safe accommodations near the medical facility, proximity is not always guaranteed, especially in dense urban areas. The nurse has no control over the specific unit, amenities, or potential roommate situations if the agency pairs nurses to reduce costs. Since the agency pays the entire housing cost directly, this arrangement reduces the nurse’s total taxable income.
Choosing the Tax-Free Housing Stipend
Selecting the housing stipend means the nurse receives a specified, non-taxable monetary amount to cover temporary housing and associated living expenses. This allowance is determined using federal General Services Administration (GSA) per diem rates, which establish maximum daily allowances for lodging based on the assignment’s metropolitan area. The agency calculates the total stipend by multiplying the GSA lodging rate by the number of contract days.
Because the stipend is tax-free, this portion of compensation is not subject to income taxes, significantly increasing the nurse’s take-home pay. The main financial advantage is the potential to secure housing for less than the allocated stipend. If a nurse finds cheaper accommodations, the remaining difference is retained as tax-free income. This option also grants the nurse complete control over the location, size, and amenities of their temporary residence.
Financial and Tax Implications of Housing Stipends
Receiving a tax-free housing stipend is governed by strict Internal Revenue Service (IRS) regulations regarding temporary work away from a recognized “tax home.” A nurse’s tax home is usually their permanent residence or the general area where their principal place of business is located. For stipends to remain non-taxable, the nurse must maintain this financial and legal tax home, demonstrating the work assignment is temporary.
The most significant IRS requirement is the concept of “duplicate expenses.” This means the nurse must pay for expenses at their permanent tax home while simultaneously paying for temporary expenses at the assignment location. If the nurse does not maintain a permanent residence, they may be classified as an “itinerant worker.” In this scenario, the entire stipend portion of the compensation package becomes regular taxable wage income.
Failing to meet the tax home and duplicate expense criteria can result in financial penalties, including back taxes, interest, and fines, if the IRS audits the nurse’s filings. Therefore, nurses who take local contracts or those without a demonstrable financial tie to a single location are usually required to accept a fully taxed hourly wage instead of the tax-free stipend.
Pros and Cons of Each Housing Method
The choice between agency housing and the stipend is a trade-off between convenience and financial control. Agency-provided housing offers a guaranteed place to live with zero effort, eliminating the stress of a housing search. It also removes the need for upfront costs, as the agency manages security deposits and initial rent payments.
The drawback is a loss of control over the living situation, including location, furnishings, and potential housemates. Since the agency absorbs the housing cost, the nurse receives a lower overall take-home compensation compared to the stipend option.
Conversely, the stipend offers the advantage of financial gain, as money saved on rent is retained tax-free, along with flexibility in choosing accommodations. The risks include the high effort required to coordinate logistics and the need for substantial upfront funds for deposits and rent. Furthermore, the stipend carries the risk of tax liability if the nurse fails to adhere to IRS tax home requirements.
Key Factors When Securing Your Own Housing
Nurses who opt for the housing stipend must prioritize securing suitable short-term accommodations immediately upon signing a contract. It is advisable to begin the housing search concurrently with the contract signing, often four to six weeks before the assignment start date. A crucial logistical step is aligning the lease length precisely with the contract duration to avoid unnecessary costs or mid-assignment relocation.
Thorough neighborhood research is necessary, focusing on safety, commute times, and proximity to essential services. Since many short-term rentals are unfurnished, the nurse must also plan for utility setup, including electricity and internet. They may also need to arrange for temporary furniture rental or purchase used items.
Many travel nurses rely on specialized housing platforms, such as Furnished Finder or specific Facebook groups dedicated to travel nurse housing, which cater to 3- to 6-month leases. Extended-stay hotels also serve as a practical, short-term solution. These options often include basic furnishings and utilities in a single weekly rate, simplifying the administrative burden for the contract duration.