The Victorian government is delivering cheaper rent and increased security for thousands of low-to-moderate-income households with new settings for the state’s Affordable Housing Rental Scheme.
The new parameters are aimed at easing cost-of-living pressures for essential workers and families.
Under the overhauled guidelines, rent for eligible residents will now be capped at whichever is lower: 30 per cent of the total household income, or 74.99 per cent of the current market rate.
This marks a significant reduction from the previous framework, which pegged rent caps at 90 per cent of market rent or 30 per cent of the median household income.
In a further bid to provide stability, standard lease agreements under the scheme will be extended from three years to five years, allowing families to plant roots and plan for the long term.
“Every Victorian family deserves a safe, secure place to call home,” Minister for Housing Nick Staikos said.
“We’re cutting rents and locking in longer leases — because families need stability, not uncertainty.”
To qualify for the scheme, income thresholds have been set to target those who need it most. Single applicants can earn up to AU$74,080 annually, couples up to AU$111,110, and families up to AU$155,550. These benchmarks, alongside market rent variables, will be reviewed annually to ensure ongoing affordability.
Since its launch in 2022, the Affordable Housing Rental Scheme has delivered more than 500 homes in high-demand suburbs including Kensington, Ascot Vale, and Ashburton, positioning renters close to jobs, public transport, and essential community services.
The initiative complements the government’s broader AU$6.3 billion Big Housing Build and Regional Housing Fund, which are on track to deliver more than 13,000 social and affordable homes across the state.
