Focus Ireland says an alarming number of families are becoming homeless in Dublin due to the lack of government support available.
40 families became homeless in Dublin in August alone, highlighting the continuing homeless crisis in the city.
The number of families becoming homeless each month more than doubled over the last year. 300 families have become homeless in Dublin so far this year.
Roughan MacNamara from Focus Ireland says the state can save money in the long run.
The figures come after the charity made a submission to the Department of Social Protection's 'Review of Rent Supplement Levels' last month.
The charity called for rent supplement payments to match real rent levels, to help prevent families and individuals from losing their homes.
The submission also warned that the rent review process of government "is fatally flawed" and will not solve the problem.
Focus Ireland director of advocacy Mike Allen said "A lot of the families that are becoming homeless and others we are supporting to try to prevent them losing their homes have been forced to top-up the rent supplement to meet the market cost of rent as the rent supplement doesn't cover the rent."
"Paying this top-up month on month is clearly not sustainable and it just pushes families deeper into debt and nearer to homelessness," he added.
Focus Ireland said the government must raise rent supplement rates to stop the rise in the number of families losing their homes as they cannot afford to pay their rent.