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Politics
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I lived in a very comfortable and cozy officer barracks at Camp Humphrey in South Korea. About 400sqft. Had a living room, bedroom, full bathroom, full kitchen, and I lived by myself. The building housed a couple hundred people, all in single occupancy. I don't see why any congressperson needs anything more than that when they shouldn't be staying there 3/4 of their term.
There are a couple military installations around the DC area if you're worried about securing a bunch of politicians in a single area instead of dispersed. Maybe living on post they will realize how terrible some junior enlisted barracks are and actually spend some defense money on the service members that need it the most.
I'd rather the government give them a place to stay at tax payer expense than give them more than the minimum wage of the state they represent.
Yeah, a congressional hotel or apartment building is probably the way to go, although the flip side of that is that it further insulates members of Congress from 'normal' life.