June has 60 days to pack up and Plan B is living in a caravan

All rental applications made by the 78-year-old widow have been rejected as real estate agents flagged her limited income.

"If we rent you this apartment, how will you afford to live?" she reported being asked by a real estate agent.

The average price for an Australian rental home rose to $630 per week in March 2024 while the mean unit price was $620.

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Her Frankston home in Melbourne's south east has consumed much of her pension since the rent was raised to $410 per week five years ago.

Ms Damman, like many other single Australian seniors, receives $558 per week in old age pension.

After the rent is paid Ms Damman uses the remaining money to pay for bills, food and medication.

Facing an uncertain future, and dealing with suspected anxiety attacks over the move, Ms Damman is selling as much of her furniture as possible while she forms a plan.

Ms Damman is not alone.

"Older renters do it tough," National Seniors Australia CEO Chris Grice said.

Around 15 per cent of older Australians are not homeowners.

"The Age Pension was designed on the assumption older people own their home," Mr Grice said.

But he said the seniors advocacy organisation "regularly hears from pensioners who are struggling to pay rent while contending with other competing necessities".

Almost 40 per cent of older renters experienced severe cost-of-living pressure as a result of rising prices, a report from National Senior Australia found

"If rents increase, older people can't simply find somewhere else more affordable to live and must then contend with the cost and stress of moving - which is a huge worry," Mr Grice said.

"The scarce availability of age-appropriate, affordable housing, and housing stock shortages are big issues for seniors who rent.

"Housing security remains a problem for renters, many want easier and more affordable pathways to buy, or more secure, affordable, long-term rental options."

Around 542,000 people aged 55 and older received the Commonwealth Rent Assistance (CRA) which increased by $18.82 per fortnight in the 2024 Federal Budget.

The maximum fortnightly payments under CRA are $207.

Mr Grice said that while the increase was welcomed "it is not enough and should be further increased. It will disappear if rents rise faster than consumer price index (CPI)".

"Currently, indexation continues to be attached to general CPI and not the rent component of CPI," he said.

"We believe indexing to the rent component of CPI will also help address the housing problem facing older renters now and into the future."

Ms Damman has lost hope that she'll be approved for a rental property before she's expected to move out.

Her daughter Fiona Honeywill has devised an alternate plan. The family will raise money to buy a second-hand caravan to be parked in their driveway.

But the family are struggling to raise $15,000 to buy a caravan before Ms Damman is evicted.

An online fundraiser has been launched to raise money for the pensioner's new home.