Renting affordable housing

Rents for affordable housing are set in one of two ways.

1. As a discount of the current market rent. This means that rent is usually set between 20% and 25% below the market rent. Where rent is set this way, the amount you pay will depend on the market rent for a similar property in the same area.
2. As a proportion of a household’s gross (before tax) income. Where rent is set this way, your household may be charged between 25% and 30% of the household’s before tax income as rent. You may also be charged 100% of your household’s Commonwealth Rent Assistance (CRA) entitlement if you are eligible for CRA.

Different affordable housing managers set the rent differently, and sometimes they use both methods across the properties they manage. It usually depends on how the property was funded and the circumstances of the tenant.