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How are affordable housing rents set?

Affordable housing rents vary, and are set either as a discount to the market rent or as a percentage of a household’s income.

Where rent is set as a discount of the market rent, the discount is usually between 20 and 25% compared to the market rent for a similar property in the area.

Where rent is set as a proportion of a household’s income, households may be charged between 25 and 30% of their before tax income for rent, although providers may charge slightly more in some circumstances.

The method used to set rent is often determined by how a property was funded originally and the requirements of the funding contract. It is also influenced by the strategies managers use to ensure that affordable housing properties are available to a range of income groups balanced with a need to ensure rents cover the cost of managing the properties.

For more information about renting affordable housing, or to apply, please see renting affordable housing.