How Direct Cash Payments Are Preventing Youth Homelessness in Baltimore

“Nine times out of ten, I would have been homeless,” Amir Sydnor said.

The 23-year-old East Baltimore native was facing a mounting crisis when he found himself out of work and four months behind on his rent.

As pressure from his landlord intensified, a volunteer from the local nonprofit Thread provided a different path: a direct cash payment through a partnership with Point Source Youth. By mid-May, Sydnor had received over $7,500 to cover his back rent, utility bills, and groceries, providing a sudden stabilization to his life.

Sydnor is among the first 50 Baltimore recipients of a new program that uses one-time cash transfers to prevent young adults from falling into the homelessness system. The New York-based nonprofit, Point Source Youth, works with local organizations to create housing action plans for 18- to 24-year-olds, targeting a demographic that faces unique vulnerabilities including cyclical poverty, addiction, and histories in the foster care system.

The stakes of this intervention are both human and fiscal. According to a report from the U.S. Housing and Urban Development Commission, more than 35,000 people aged 25 and younger experience homelessness on any given night in the United States. In Maryland, these challenges are most concentrated in Baltimore.

The math of prevention

Larry Cohen, Point Source Youth’s director and co-founder, suggests that the immediate cost of the payments is a fraction of the long-term societal expense.

Young adult rental assistance program redesign

“It may seem a little wild giving young people $3,000 to not experience homelessness, but if you don’t and they end up entering a shelter later on, you’re going to end up spending $30,000,” Cohen said.

This preventative approach is backed by data from a pilot program conducted between 2024 and 2025 across seven other states. That initiative enrolled more than 300 participants and distributed an average payment of approximately $3,700 per person. A study from the Johns Hopkins Bloomberg School of Public Health found that more than 90% of those recipients remained out of the homelessness system six months after receiving their funds.

For some, the cash acts as a bridge to help maintain existing stability. For others, it serves as the capital necessary to transition into independent living. Davonta Ayers, 25, used the funds to secure his own apartment for the first time after struggling to maintain steady employment following the loss of his father and two brothers. The money covered his security deposit, first month’s rent, and essential furniture.

“It’s peace, honestly,” Ayers told The Banner, describing the mental health benefits of having a stable place to live.

Supply versus direct aid

While the efficacy of cash transfers is supported by early results, some experts suggest that direct payments cannot function in a vacuum. Casey Dawkins, a professor of urban studies and planning at the University of Maryland, noted that these initiatives are most effective when they are part of a broader ecosystem.

Dawkins observed that cash payments alone will not resolve homelessness if there is a fundamental lack of available, affordable housing. Dawkins suggested that these programs work best when paired with an overall housing strategy that addresses the supply side of the market, much like the federal government’s Housing Choice Voucher program.

The current Baltimore initiative involves a network of regional partners, including the YMCA of Central Maryland and the Howard County Department of Housing and Community Development. This collaborative model aims to address the specific financial burdens that hit young adults hardest. According to the Johns Hopkins study, direct housing costs like rent and utilities account for an average of 52% of a Point Source Youth recipient’s budget.

Expense Category	Impact on Recipient Budget
Housing (Rent & Utilities)	52% average
Other Essentials	Transportation, groceries, and other needs

Breanna Sorrell, a housing navigator with The Relatives, noted that the partnership has allowed for more rapid support in instances where young people were already facing imminent eviction.

“It gives people a light to look forward to, it gives people a reason to keep their head up,” Sydnor said.

Worth a look