Multnomah County has been spending tens of thousands of dollars annually on each shelter bed it operates, with costs for beds in motels or alternative shelters, such as tiny home villages, significantly exceeding those in congregate shelters.
This information was presented to the Multnomah County Board of Commissioners on Tuesday at the request of Commissioner Shannon Singleton.
Singleton, who served an eight-month stint as the county’s interim homeless services director in 2022, requested a detailed breakdown of costs associated with different types of shelter and outcomes for individuals utilizing the shelter system.
“I’ve requested these assessments so we can really examine the shelter investments and understand the types, the costs, and the outcomes,” Singleton explained.
The data shared focused on the costs for congregate, motel, and alternative shelters intended for adults only.
Officials revealed that the county’s cheapest shelter beds still cost more than $20,000 to operate annually, while the most expensive options exceed $50,000.
In contrast, the average rent price in Portland hovers around $1,750 a month according to estimates from Zillow and Rent Cafe, which is still less than what the county spends monthly on even its cheapest shelter bed.
However, county officials emphasized that operating costs for shelters include staff salaries, materials, insurance, and other necessary supplies and services, making the comparison not entirely valid.
The county noted that in most cases, over 60% of a shelter’s budget is allocated to staff expenses.
Congregate shelter units, such as the overnight shelters that Portland Mayor Keith Wilson has pledged to implement across the city, are the county’s most economical option.
According to county estimates, maintaining one congregate shelter bed costs an average of $21,986 a year, or roughly $1,832 a month.
However, these shelters tend to be less effective in transitioning individuals into stable housing.
Data from the county’s homeless services department revealed that only 14.8% of people seeking refuge in county congregate shelters were able to move into permanent housing between July 1, 2023, and June 30, 2024.
Additionally, 8.6% found temporary housing, while 42% returned to homelessness.
In contrast, the county’s motel shelters impose a much higher expense, costing an average of just under $4,300 a month.
Yet, these units demonstrate significantly better success rates for helping individuals regain stability; around 38% of adults in motel shelters transitioned to permanent housing over the 2023-2024 fiscal year.
Notably, the data provided did not encompass families, as they are usually placed in motel-style shelters.
Alternative shelter options, such as “sleeping pod” villages, also carry higher costs than traditional shelters, averaging nearly $3,000 a month.
These smaller shelters provide separated spaces with added privacy and reported the highest rates of transitions into permanent housing.
More than 50% of the adults who stayed at one of the county’s alternative sites moved into an apartment or house during the last fiscal year.
Singleton’s request also included demographic breakdowns and outcomes categorized by age, gender identity, and ethnicity, which were shared with the board.
This discussion comes as Chair Jessica Vega Pederson prepares to unveil her proposed budget on April 24, which should clarify potential program cuts.
The county’s homeless services department is currently facing a significant $70 million deficit, posing a threat to rent assistance, shelter availability, and other essential programs.
image source from：https://www.oregonlive.com/politics/2025/04/how-much-does-multnomah-county-pay-for-its-homeless-shelters-it-varies-by-type.html
