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We are both in our late 60s, living on SS and a pension, in an apartment downtown. We are okay, but health care costs keep taking a bigger and bigger bite of our income. It's obvious we will need subsidized housing ere long. We understand waiting lists can be years long. Where should we start our search?

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Start at your local HUD office.
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Does anyone know if there is such a thing as subsidized housing that will accept pets?
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Hugemom, Tenants in "federally assisted" housing for the elderly or handicapped are allowed by law to own pets. The housing doesn't have to be federally owned --just subsidized.
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Do a search online " subsidized housing your city" you should come up with information. Also contact your local area agency on aging. That organization is suppose to have resource info for low income seniors.
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Many cities have case managers or agencies that specialize in the need of seniors. You say that medical costs are going up. They will be able to determine if you are eligible for a benefit through Social Security to help pay for medical or if you are eligible for Medicaid. There are many benefits that if you are eligible would "free up" money for rent. You also go on-line or call your local 211 to see if they have any information.
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padomites16: Start with the COA in Oil City, PA.
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ways to lower your income with estate planning tools or subsidized housing will probably be not available because of income restrictions. Alternatively, ex pat retirement..seriously.
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