Minneapolis is giving people $500 a month and recipients say the no-strings-attached cash is helping them fight soaring housing costs

Low-income households in Minneapolis who've received $500 a month as part of a pilot guaranteed basic income program say the no-strings-attached cash is most useful for housing costs, according to a recent report from the Federal Reserve Bank of Minneapolis.

Thirty-five percent of the 200 households participating in the two-year program said "the most important use of the extra money" was rent or mortgage payments, while another 17% said utilities, including gas, electric, water, and internet, topped their priority list, according to a survey conducted at the program's 12-month mark.

A survey of the recipients conducted six months into the pilot found similar results, though more — 21% — said utilities were the

A large majority of recipients — 59% — said housing was among their top three most important spending categories, while 54% said the same of utilities, according to the 12-month survey.

The fact that housing and utilities topped the list of priorities is in part a reflection of Minneapolis' shortage of affordable housing.

Median rent in the Twin Cities region has risen almost 20% over the last five years, the Federal Reserve reported in August, and half of all tenants spend at least 30% of their income on rent. The surveys also asked questions about recipients' housing stability, including whether their housing is overcrowded, and how frequently they fall behind on rent or are forced to move homes.

They found the program may have improved housing stability among recipients.

But significantly improving a recipient's housing situation might only be possible in a longer-term program or with larger payments, the researchers found.

Ref: Minneapolis is giving people $500 a month and recipients say the no-strings-attached cash is helping them fight soaring housing costs (businessinsider)

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