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How are 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 per cent 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 per cent 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 the For renters of affordable housing page.