Only nine rental listings in Australia would be affordable for JobSeeker recipients if the unemployment benefit is slashed to its pre-coronavirus rate.
Sydney, Melbourne, Adelaide, Darwin and Canberra would have no affordable rental listings whatsoever.
The federal government has temporarily doubled the JobSeeker payment, previously called Newstart, to help Australians through the economic fallout of COVID-19.
Anglicare Australia has found only 1040 of nearly 70,000 rental listings in Australia are affordable under the boosted level of payment.
The dole is due to be slashed in half at the end of September.
The annual Anglicare snapshot looked at almost 70,000 listings on March 21 this year, dubbing any property that would require welfare recipients to spend more than 30 per cent of their payment on rent as unaffordable.
Executive director Kasy Chambers wants the temporary rise in the JobSeeker payment to be permanent and extended to pensioners and people with disabilities.
"Welfare increases have given people badly needed relief," Ms Chambers said.
"But the market is still failing people on the lowest incomes."
Everybody's Home spokesperson Kate Colvin said Australia would see even more people experience homelessness as the nation recovered from the economic impacts of coronavirus.
"COVID-19 has exposed how badly broken our housing system is," Ms Colvin said.
JobSeeker recipients receive $1100 a fortnight, up from the Newstart rate of around $550 a fortnight.
Ms Chambers warned if the payment was halved, renters would be pushed into homelessness.
"We must raise the rate of these payments for good. If they are halved in six months - and if pensioners and people with disability are left out - renters will be pushed even deeper into poverty and homelessness," she said.
Anglicare also wants the government to invest in social housing, saying 500,000 affordable rental properties are needed across the country.
Community Housing Investment Association NSW chief executive Mark Degotardi said rent reductions wouldn't be enough to help people.
"The evidence of housing stress is piling up and urgent government intervention is desperately needed," he said.
The Anglicare report also found older Australians would be able to afford only 743 of 69,960 rental listings under the age pension.
People on the disability support pension would only be able to afford 326 properties.
The report points to estimates that up to 1.4 million Australians could end up on the JobSeeker payment.
Labor, the Greens and former prime minister Tony Abbott have suggested the enhanced dole rate should be kept once the crisis is over.
Australian Associated Press
