Travel Nurse Housing Stipends by State: Rates, GSA Rules & How to Maximize Tax-Free Income
How Travel Nurse Housing Stipends Work
A housing stipend is a tax-free reimbursement that your agency pays to cover the cost of temporary housing while you're on assignment away from your permanent home. It's the largest single component of most travel nursing pay packages — often representing 50–65% of your total weekly gross pay.
The critical distinction is that housing stipends are reimbursements, not wages. The IRS treats them differently from salary: they're not subject to federal income tax, state income tax, Social Security, or Medicare withholding — as long as you qualify. This tax treatment is what makes travel nursing financially attractive compared to equivalent staff nursing positions.
Use the travel nurse pay calculator to see exactly how your stipend amount affects your take-home pay after taxes in any state.
The GSA Per-Diem Rate: Your Stipend's Legal Ceiling
The General Services Administration (GSA) publishes per-diem rates for every county in the United States. These rates represent the maximum tax-free reimbursement the IRS allows for lodging and meals/incidentals by location. Your agency cannot legally pay housing stipends above these rates on a tax-free basis.
How GSA Rates Are Set
GSA surveys market hotel rates in each county annually and sets per-diem rates to cover a standard single room including taxes. Rates are updated each October for the new fiscal year. High-cost cities like New York, San Francisco, and Washington DC have GSA lodging rates that are 3–5x higher than rural counties — which is why travel nurse stipends vary so dramatically by location.
When an agency advertises a housing stipend amount, you can verify it against the GSA rate for your assignment county. Reputable agencies pay at or below the GSA maximum. If a stipend is above the GSA published rate, the excess is taxable income — and you're responsible for that tax regardless of how the agency structured the contract.
FY2027 GSA Lodging Rates by State and City
Stipend amounts below reflect FY2027 GSA lodging rate ceilings multiplied by 7 days and are provided as reference benchmarks.
Housing Stipend Ceilings by Market (FY2027 GSA Lodging Rates)
| Market | GSA lodging per night | Weekly ceiling (×7) | Notes |
|---|---|---|---|
| Most of the U.S. (standard rate) | $113 | $791 | Any county without its own rate |
| San Francisco, CA | $232–$325 | $1,624–$2,275 | $279 Oct–Dec & Sep; $325 Jan–Mar; $232 Apr–Aug |
| New York City (5 boroughs) | $189–$358 | $1,323–$2,506 | $358 Oct–Dec & Sep; $296 Mar–Jun; $250 Jul–Aug; $189 Jan–Feb |
| Boston / Cambridge, MA | $213–$365 | $1,491–$2,555 | $365 Oct & Sep; $305 Mar–Aug; $213 Nov–Feb |
| Seattle, WA | up to $255 | up to $1,785 | GSA FY2027 rate for King County; some months are lower |
| Denver / Aurora, CO | up to $227 | up to $1,589 | GSA FY2027 rate for Denver/Adams/Arapahoe/Jefferson; some months are lower |
| Chicago, IL | $148–$238 | $1,036–$1,666 | $232 Oct–Nov & Sep; $148 Dec–Mar; $238 Apr–Jun; $213 Jul–Aug |
| Los Angeles area, CA | $199 | $1,393 | Flat all year |
| Washington, DC | ~$246 average | ~$1,722 | Approximate; check monthly rates |
Rows marked "up to" show GSA's listed FY2027 rate; other months within the fiscal year can be lower. Rates reset every October 1 and many markets are seasonal. These are maximum tax-free amounts; your agency may pay less. Look up your exact county at gsa.gov/perdiem. Updated for FY2027 (effective Oct 1, 2026).
The Tax Home Requirement: The Rule Most Nurses Miss
To receive housing stipends tax-free, you must maintain a legitimate tax home — a primary residence where you regularly live and that you continue to pay for while on assignment. The IRS requires that you be "away from home" to qualify for tax-free per-diem reimbursements.
What qualifies as a tax home:
- A home you own or rent and continue to pay for (mortgage, rent, utilities) while on assignment
- A residence where you return between contracts
- A location you can demonstrate ongoing financial ties to (voter registration, driver's license, bank accounts, etc.)
What disqualifies stipend tax-free status:
- Giving up your permanent residence to travel ("going homeless") — the most common costly mistake
- Having no regular, established residence before beginning travel nursing
- Staying at the same facility or in the same area so long that it becomes your "tax home" (typically beyond 12 months)
If your stipends are determined to be taxable by the IRS — due to a missing or inadequate tax home — you could owe back taxes on years of stipend income. This is a real audit risk that travel nurses face, and it's worth consulting a tax professional who specializes in travel nursing before your first contract.
How to Maximize Your Tax-Free Stipend Income
Strategy 1: Maintain a Qualifying Tax Home
The single most impactful thing you can do. Keep your permanent residence — even if it means renting a room rather than a full apartment. The monthly cost of maintaining your tax home is more than offset by the annual tax savings on stipend income, especially if you're earning $1,200+ per week in stipends.
Strategy 2: Find Your Own Housing
Agencies often offer either a housing stipend (you find your own place) or agency-arranged housing (they find a place and you forgo the stipend). In most markets, finding your own housing through furnished apartment platforms, Facebook groups, or nurse housing networks will cost less than the stipend amount — letting you pocket the difference tax-free.
Strategy 3: Target High-GSA Markets
All else being equal, a contract in San Francisco or New York will have a higher stipend ceiling than an equivalent contract in the Midwest — even if the taxable base pay is similar. If the housing cost difference is manageable, high-GSA markets improve your overall take-home.
Strategy 4: Verify GSA Compliance
Before signing, verify that your agency's stipend amount doesn't exceed the GSA per-diem rate for your assignment county. Agencies that pay above GSA rates may be setting you up for a tax problem — any excess over the allowable per-diem is taxable income, and you bear that liability even if the agency structured it otherwise.
Meals & Incidentals: The Other Stipend Component
Beyond housing, travel nursing contracts include a meals and incidentals (M&IE) per-diem. This is also tax-free under the same rules as housing and is also capped by GSA rates per location. The GSA meals cap is $68–$92/day ($476–$644/week: standard $68, Los Angeles $86, San Francisco/New York City/Chicago $92). Many contracts pay less, but agencies cannot pay more tax-free.
The M&IE per-diem is designed to cover food costs above what you'd spend at home. While most travel nurses use it as general supplemental income, it's technically a reimbursement — which is why it's tax-free but also why your tax home status matters for it too.
Roughly $16,000 at standard-rate locations and $30,000+ in the highest-cost markets at the GSA maximums — all excluded from your taxable income. At a 25% effective tax rate, that represents $4,000–$7,500+ in annual tax savings over a staff nursing equivalent.