Renting affordable housing

Last published 15 Apr 2024

Find information about affordable rental housing, who is eligible, how rent is set and how to apply

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What is affordable rental housing?

Affordable rental housing is housing available to very low to moderate income households which is priced so that these households are also able to meet other basic living costs such as food, clothing, transport, energy, medical care and education.

Affordable housing may include a range of accommodation types and sizes, including single or multibedroom units, houses and studio apartments. It is usually priced at less than market rent. It is only available in some locations and applicants must meet eligibility criteria.

Affordable rental housing in NSW is usually managed by a registered community housing provider.

Many people need affordable rental housing for lots of different reasons, including people who work full - or part-time in lower paying jobs. Affordable housing may also be useful for people who are going through a change in their lives which effects their financial situation - such as having a baby, getting a divorce or leaving home for the first time, as well as people receiving a government pension or benefit.

Am I eligible for affordable rental housing?

Eligibility for affordable housing mostly depends on your household income, which must be within the maximum limits set by the NSW and/or Australian Governments (see How much income can I earn ?).

Other eligibility criteria may include:

whether you are a citizen or permanent resident of Australia
whether your household would be able to find suitable or adequate housing in the private rental market
whether you own any assets (eg a property) which you could use to solve your housing need
whether you can show that you are able to maintain a successful tenancy.

Specific criteria may vary between CHPs, so you will need to check when you contact an affordable housing manager.

How much income can I earn?

The amount of income your household can earn and still be eligible for affordable housing might vary depending on the property that you would like to rent, so you will need to check with the CHP managing the affordable housing property. In general, income limits are as follows:

General household income limits

The income eligibility limits for general affordable housing (not funded by NRAS) can be found in NSW Affordable Housing Ministerial Guidelines PDF, 14062.98 KB on page 18 at table 3 for properties in the Sydney region and page 19 at table 4 (for properties in the rest of NSW).

National Rental Affordability Scheme household income limits

Many affordable housing properties available in NSW have been funded under the National Rental Affordability Scheme (NRAS), an Australian Government initiative delivered in partnership with the NSW Government.

The household income limits for NRAS properties are slightly different than the general limits, and can be found here.

You will notice that the more people you have in your household, the higher your household income is allowed to be.

Income limits change each year. Use the online links above to see the most recent limits.

How much rent will I pay?

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

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.
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.

How long can I stay?

Generally, tenants of affordable housing enter into a lease for a fixed term and you will need to continue to meet the eligibility criteria during the tenancy.

As long as you remain eligible for affordable housing the lease can generally be renewed or continued.

How is affordable housing different to social housing?

Affordable housing is not the same as social housing. You do not have to be eligible for social housing to apply for affordable housing, though people who are eligible for social housing may also be eligible for affordable housing properties.

Affordable housing is open to a broader range of household incomes than social housing, so you can earn more income and still be eligible. Rent is also calculated differently and there are different tenancy arrangements.

Some affordable housing properties may be available to some applicants on the NSW Housing Register, and also to people who are leaving social housing.

To apply

To apply for affordable housing, you can:

Look for current vacancies on the following websites:
- Welcome Mat (a dedicated affordable housing platform)
- Real Estate or Domain.com (general rental housing platforms with some affordable housing listings); or
Contact the CHP managing affordable housing directly.

Affordable housing is only available in some locations. Even if there is affordable housing in a location, there is no guarantee that a suitable property will be available so please contact the managers directly for further information.

You will need to apply separately to each manager in the locations you are interested in, just like you would if you were applying for a private rental property. You can apply to as many managers as you like and each application will be assessed separately according to the eligibility criteria.

Most managers ask you to complete an application form and provide documents to support your application. You will usually be asked to provide proof of Australian residency, identity, income, medical documents indicating any disabilities or serious health problems, rental history, personal references and other relevant information.

Your application will then be assessed for eligibility based on your information. The manager will let you know the outcome and if your application is successful. It’s important to note that completing an application form, or even being assessed as eligible, does not guarantee you an affordable housing property.

If there is no vacancy, you may be able to go on a waiting list, but these are not kept by all managers. If the manager you have applied to keeps a waiting list, it is important to keep them up-to-date with any changes to your contact details or circumstances, so they can contact you if a property becomes available.

For more information

For more information about affordable housing, including details about eligibility, setting rent, lease arrangements and vacancies, please contact the affordable housing managers directly. A list of CHPs which provide affordable housing and a link to their website can be found here.

Some questions you might ask managers include:

Am I eligible?
How much rent will I pay?
Are there any vacancies at the moment?
Do you keep a waiting list?
How long can I stay in an affordable housing property?
What happens if my income changes?
What happens to my place on the NSW Housing Register for social housing if I enter an affordable housing tenancy?

For more information about residential tenancies in NSW, go to NSW Fair Trading.

For information about social housing assistance, go to what is social housing.

Contact list of CHPs which manage affordable housing

Below is a list of CHPs which provide affordable housing and a link to their website for more information.

Please contact the CHP directly for any further enquiries about applying for affordable housing and vacancies.

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Last updated: 15 Apr 2024