Not One-Size-Fits-All: Why Knowing the Types of Homelessness Can Change Everything

Recognizing all forms of homelessness is essential. Only then can people get the proper support they need to rebuild their lives.

When most people hear the word “homeless,” a very specific image often comes to mind: a single person, possibly struggling with substance use or mental illness, living on the streets or in a shelter. While this image reflects a real and urgent part of the homelessness crisis, it’s far from the whole story.

At Community Housing Network, we work every day with individuals and families across Oakland and Macomb counties who are experiencing homelessness in ways that are far less visible—but no less devastating. These are the families living in their cars, the single mothers bouncing between motels, and the teenagers couch surfing with friends. They are the “hidden homeless,” and they make up a significant portion of our community’s unhoused population.

The Four Categories of Homelessness

To understand the full scope of homelessness, it’s important to look at how it’s defined by the U.S. Department of Housing and Urban Development (HUD). HUD outlines four categories of homelessness:

1. Category 1: Literally Homeless – Individuals or families living in places not meant for human habitation (e.g., streets, cars, emergency shelters).
2. Category 2: Imminent Risk of Homelessness – People who lose their primary nighttime residence within 14 days and have no subsequent residence or resources.
3. Category 3: Homeless under Other Federal Statutes (McKinney-Vento) – Primarily used for children and youth who are unstably housed (e.g., doubled up, couch-surfing, living in motels).
4. Category 4: Fleeing Domestic Violence – Individuals or families fleeing domestic violence with no safe housing alternatives.

The McKinney-Vento Gap

One of the most misunderstood and underfunded categories is Category 3—those covered under the McKinney-Vento Homeless Assistance Act. This category includes children and youth who lack a fixed, regular, and adequate nighttime residence. Think of the high school student sleeping on a friend’s couch or the family of four living week-to-week in a motel.

Despite the clear vulnerability of these individuals, McKinney-Vento homelessness receives very limited funding. This means that families and youth who fall into this category often don’t qualify for the same housing assistance or supportive services as those who are homeless.

Hidden Homelessness: A National Crisis

Across the nation, hidden homelessness is a growing crisis. While most people would consider cycling between motels and couch surfing as homeless, people living in this situation aren’t being served most current programs. This type of homelessness is prevalent in areas seen as more affluent, including Oakland and Macomb Counties. According to a recent article in Second Wave Media, many families are living in temporary, unstable housing situations that don’t meet the HUD definition of literal homelessness. These families, often left out of the conversation entirely, are often invisible in official counts and statistics, making it harder to advocate for the resources they desperately need.

Without a clear understanding of the different types of homelessness, it’s easy for policymakers and the public to overlook the needs of those who aren’t sleeping on the streets—but are still without a home.

The System Isn’t Designed to Prevent Homelessness

One of the most frustrating realities we face as a nonprofit is that the current system is reactive, not proactive. Most funding and services are geared toward helping people once they’ve already become homeless. There’s very little support for those who are on the brink—those in Category 2 or 3—who could avoid homelessness altogether with just a little help.

While eviction and homeless prevention funds do exist, they are extremely limited. One of the challenges facing the homeless response system is the tremendous amount of need versus the limited resources available. There currently are not enough resources to serve those currently experiencing literal homelessness, let alone those who are facing eviction or are “doubled up”.

Affordable housing remains a scarce resource in many cities. America’s housing policy has never fully met the demand for affordable rental housing, and an influx federal budget has prolonged a pause on access to Michigan’s Housing Choice Voucher program – the Michigan State Housing Development Authority (MSHDA) stopped issuing new vouchers in July 2024 and closed its waitlist.

With voucher budget cuts in 2025 targeting housing programs, millions of renters are worried their support will shrink – or disappear entirely. The proposed budget is approximately $70 billion, marking a reduction of nearly 10 percent compared to the previous year. Key programs facing cuts include:

• Housing Choice Vouchers (formerly known as Section 8): Reduced funding could limit new enrollments
• Project-Based Rental Assistance: Likely to see reductions, impacting availability
• HOME Investment Partnerships Program: Potentially significant cuts that slow affordable housing construction

These cuts, if enacted, will challenge efforts to reduce homelessness and improve affordable housing availability nationwide.

This lack of preventive support creates a vicious cycle. Families who could have stabilized with short-term rental assistance or case management end up losing their housing entirely. Once they fall into Category 1, their path back to stability becomes longer, more expensive, and more traumatic.

Efforts are slowly being made, though, as part of Michigan’s campaign to end homelessness, which remains an uphill battle. A $4 million pilot program, for example, is hoping to tackle homelessness in 12 Michigan communities through what’s known as shelter diversion.

Last year, Community Housing Network began incorporating the Critical Time Intervention (CTI) model into its Rapid Rehousing program to help individuals and families obtain housing quickly, increase self-sufficiency, and stay housed permanently.

Why This Matters

Understanding the full spectrum of homelessness isn’t just an academic exercise; it has real-world implications for how we allocate resources, design programs, and advocate for change.

• Families in motels or doubled up with relatives need different support than individuals living on the streets.
• Youth experiencing couch-surfing need targeted outreach and educational stability.
• Survivors of domestic violence need trauma-informed care and safe housing options.

Each category of homelessness requires a tailored approach. But without adequate funding and public awareness, many of these needs go unmet.

What We Can Do

At Community Housing Network, we’re committed to serving all individuals experiencing homelessness—regardless of which category they fall into. But we can’t do it alone. Here’s how you can help:

• Educate yourself and others. Share this blog post. Talk to your friends and family about the different types of homelessness.
• Advocate for policy change. Contact your local representatives and urge them to support increased funding for McKinney-Vento programs and preventative services.
• Support local nonprofits. Your donations help us provide emergency assistance, case management, and advocacy for families who might otherwise fall through the cracks.

Homelessness is a complex, multifaceted crisis that affects people of all ages, backgrounds, and circumstances. By broadening our understanding and challenging outdated stereotypes, we can build a more compassionate and effective response—one that truly meets people where they are.

Let’s stop waiting until people sleep on the streets to offer help. Let’s start supporting them before they lose their homes.