diff --git a/lib/ansible/modules/cloud/rackspace/rax.py b/lib/ansible/modules/cloud/rackspace/rax.py
index dad2e2a4f8d..a859e7a7bb3 100644
--- a/lib/ansible/modules/cloud/rackspace/rax.py
+++ b/lib/ansible/modules/cloud/rackspace/rax.py
@@ -285,7 +285,7 @@ def create(module, names=[], flavor=None, image=None, meta={}, key_name=None,
     if user_data:
         config_drive = True
 
-    if user_data and os.path.isfile(user_data):
+    if user_data and os.path.isfile(os.path.expanduser('user_data')):
         try:
             f = open(user_data)
             user_data = f.read()