Just 28 islanders have been accepted or are still going through suitability checks to take in a Ukrainian refugee.
Around 300 people had offered shelter under Guernsey's Sponsorship Scheme, which opened in May.
The States has confirmed hosts will get £349 a month for up to a year to meet additional costs.
The money will be administered through Employment & Social Security's income support scheme.
Officials are hoping the financial assistance will encourage others to come forward.
16 Ukrainians have settled in the island since the Russian invasion began six months ago. Only four of these are living with sponsors. The others are staying with relatives.
Home Affairs President Deputy Rob Prow says he's pleased to have taken another step forward in supporting refugees:
"We are pleased to have received support from P&R for us to now provide financial assistance for islanders partaking in the sponsorship scheme.
This move puts us in line with the similar schemes in the UK and the Isle of Man and will hopefully allow us to offer more accommodation for potential refugees from Ukraine.
As the indefensible Russian invasion of the country continues, it becomes more important than ever that we continue to support the Ukrainian cause, and do not start to suffer complacency when it comes to dealing with this humanitarian crisis.
I would like to take this opportunity to thank those individuals within the community who have already become an approved sponsor.”