Her sister, who is under 18, is also staying with her family.
The Salvation Army's transitional housing programme is usually for 12 weeks but Rachel has stayed for 24 weeks and is engaging with a social worker once or twice a week to discuss her daily needs.
The solo mum is trying to get into private rental and find a job but her circumstances, particularly around finances, makes it near impossible.
"Even getting kids to school in Kamo is a struggle. Not only around Christmas but on every birthday, we're unable to do anything. My 8-year-old recently had her birthday but she understands our situation," Rachel said.
She has applied for private rentals and has been declined 98 times as landlords prefer smaller families.
Salvation Army Whangārei community ministries team leader Marlene Bowers said those who could not be accommodated in the adopt-a-family initiative would be invited to a community meal on Christmas Day.
At least 60 to 70 new families walked through the door to collect food parcels each week and they were either homeless or those that moved to Northland, she said.
Salvation Army Whangārei provides transitional housing to 29 families through 16 houses and two motels.
"Her (Rachel's) struggle would be around private rental and we're pushing for Housing New Zealand and Work and Income for help with that as well. For us, it's about people engaging with us so that we're able to do the best we can for them," Bowers said.
"Housing is just the tip of the iceberg. There are a lot of social issues behind their struggle and our adopt-a-family will bring huge relief to families this Christmas."
Salvation Army Whangārei social worker Henry Mackie said it was not just large families on a benefit that needed transitional housing but working folks as well.
"A few families have moved up from Auckland and as far away as Hamilton but our focus is on families with children and solo parents. Affordability is a major issue for a lot of vulnerable families," he said.