There are many reasons why you may have become a travel nurse. Perhaps it was the higher pay rate or the opportunity to explore new places nationwide. Or maybe you like the variety of workplace settings you get to experience. No matter the reason, one of the benefits of travel nursing is having stipends to help cover your cost of living while on assignment.
It’s important to understand how to make the most of these travel nurse stipends. Here’s a breakdown of what these stipends cover and how to maximize them to make every assignment a positive experience, covering your housing needs, meals, and any small additional expenses that occur.
What Is a Travel Nurse Housing Stipend?
A housing stipend is a non-taxable allowance for travel nurses to cover lodging and utilities while on assignment. Travel nurse staffing agencies like Medical Solutions typically offer two options: agency-provided housing or a housing stipend for nurses seeking their own accommodations.
Many RNs choose the stipend route because it offers more flexibility to select where and how they live. Some nurses prefer apartments close to work, while others might stay with friends or use short-term rental platforms. The difference can become extra savings if you find affordable housing below your stipend amount. However, remember that the housing stipend is available only if you choose not to use agency-provided housing.
How Do Travel Nurse Housing Stipends Work?
Housing stipends follow U.S. General Services Administration (GSA) guidelines for traveling professionals. The amount you receive depends on the cost of living in your assignment area. So, a contract in California will likely have a higher stipend than one in Nebraska.
To qualify, you’ll need to maintain a tax home, which is a permanent residence where you have ongoing expenses. Maintaining a tax home is crucial because your stipend may become taxable income without one. Always double-check with a tax professional or your recruiter to ensure you meet the IRS requirements before claiming a tax-free stipend.
What Is a Meals and Incidentals Stipend?
A meals and incidentals stipend is another non-taxable allowance that helps cover daily food and small personal expenses while you’re on assignment. This includes groceries, dining out, and minor costs such as laundry, transportation within your work area, and other day-to-day necessities.
These stipends are based on federal per diem rates set by the GSA and vary depending on the cost of living in your assignment’s location. The good news? If you qualify for stipends, you’ll typically receive both a housing stipend and a meals-and-incidentals stipend.
Your recruiter can explain precisely how these stipends are structured in your pay package, so don’t hesitate to ask questions—they’re there to help you understand your full compensation.
Common Misconceptions About Travel Nurse Stipends
There’s a lot of confusion surrounding travel nurse stipends. Let’s clear up a few of the most common misconceptions:
“Stipends Are Free Money”
They’re not. Stipends are designed to cover your additional living expenses while away from your permanent home. Careful budgeting can help you save some of that money, but the intent is to offset costs like rent, food, and daily necessities, not to act as a bonus.
“Stipends Are the Same Everywhere”
Stipend rates vary widely by region. Assignments in high-cost areas such as California or New York offer higher stipends to balance the higher cost of living. On the other hand, contracts in smaller or rural areas might pay less, but your stipend can often stretch further thanks to lower expenses.
“Stipends Are Always Tax-Free”
That’s not always true. If you don’t maintain a tax home or stay in one location longer than a year, your stipends can become taxable. Understanding the IRS’s tax home rules and documenting your expenses carefully can help you avoid surprises at tax time.
How to Make the Most of Your Travel Nurse Stipends
Knowing what stipends are is one thing, while making the most of them is another. Here’s how to stretch your benefits and maximize your overall compensation.
1. Understand the Breakdown of Your Pay Package
Your compensation typically includes two main parts: a taxable hourly wage and tax-free stipends for housing, meals, and incidentals. Review your contract carefully so you understand how much is allocated to each. This will help you plan your budget and ensure transparency in your total pay.
2. Choose Cost-Effective Housing
If you take the stipend instead of agency housing, be smart about where you stay. Look for furnished rentals on platforms like Furnished Finder, Airbnb, or Vrbo. Sharing a rental with another travel nurse can cut costs in half, while extended-stay hotels can be economical for shorter assignments. Some nurses even embrace van or RV life, staying in RV-friendly parks near their facilities.
3. Maximize Meal Stipends
Cooking your own meals is one of the best ways to make your travel nurse stipends last. Prep meals ahead of time, pack lunches for your shifts, and shop at discount grocery stores. Apps that offer cashback on grocery purchases or loyalty programs can add up over time. Visiting local farmers’ markets can also help you save while enjoying fresh, regional produce.
4. Explore Free and Low-Cost Activities
Travel nursing isn’t just about work. It’s also about adventure. Many cities offer free attractions like hiking trails, beaches, museums, or outdoor concerts. Check for free admission days, local festivals, or community events. Libraries often offer free rentals, classes, and workshops, making them great spots for personal enrichment and social connection. Ask your recruiter or coworkers for ideas!
5. Be Strategic with Assignment Locations
The cost of living can drastically affect how far your stipend goes. Assignments are higher pay in certain states, but it’s important to consider the cost-of-living. You may consider targeting cities or regions with a lower cost of living so your travel nurse stipend stretches further, or your pay rate may balance it out. “Hidden gem” locations like the rural cities within states like California, Alaska, or New York often provide an outstanding balance of pay, affordability, and experience!
6. Use Rewards and Discount Programs
Little perks add up to big savings. Use credit cards with travel points or cashback, and sign up for hotel and airline loyalty programs. Take advantage of discounts for healthcare professionals, especially through your travel nurse staffing agency. For example, the Medical Solutions’ Clinician Discount Program offers deals with major brands to help you stretch your travel nurse stipends and your salary.
7. Track and Budget Your Expenses
Staying organized is key. Expense-tracking apps like Mint, YNAB, or EveryDollar can help you categorize spending and spot opportunities to save. Set aside portions of your travel nurse stipend for housing, meals, and incidentals—and don’t forget other personal expenses like phone bills, subscriptions, or entertainment.
8. Invest in Yourself
Your professional growth can also help you maximize your stipend over time. Earning specialty certifications or advanced degrees can lead to higher-paying assignments. Continuing education also helps you stay competitive and confident in your travel nursing career.
Your Travel Nurse Career Starts Here
The travel nurse stipends you receive for your housing, meals, and incidentals are vital parts of a travel nurse’s total compensation package and provide considerable financial benefits when managed well. Whether you opt for travel nurse staffing agency-provided housing or take a stipend, you’ll need to budget mindfully and understand the taxation rules where you’re located.
At Medical Solutions, we’re here to help travel nurses thrive. If you’re looking to start your travel nursing career, you’ve found the right place. Apply today and let us help you keep an eye on what matters most: providing exceptional patient care and enjoying the adventures of travel nursing. We’ll handle the rest!
Your next travel assignment is waiting! Search thousands of jobs on The Gypsy Nurse Job Board and find a contract that fits your goals—and your budget.
