Market and rebated rent

Last updated: 12 February 2015

There are two types of rent you can pay when you live in public housing – market rent or rebated rent.

What is market rent?

The market rent of a property is what the property could rent for in the private market.

The initial market rent of your property is written in your tenancy agreement.

The market rent value is reviewed once a year, in August. If your market rent amount changes because of the review, we will write to let you know.

How do you work out market rent?

An independent valuer works out the market rent value. It is based on the private rental market in the same area.

What is rebated rent?

Rebated rent is a subsidised rent. The Victorian Government pays part of your rent (called a rental subsidy) so you don't pay more than 25 per cent of your household income. You must be eligible and apply for rebated rent.

If you are not eligible or you do not apply, you are charged market rent.

If you pay rebated rent, you may have to pay an additional service charge where water, heating, laundry or other services are made available to you.

We review the amount you pay twice a year, in February and August.

This may change your rent amount. If this happens we will send you a letter to let you know what your new rent is.

Which rent will I pay?

The amount and type of rent you pay depends on your household income.

If the market rent of a public housing property you live in is:

  • More than 25 per cent of your household income: you will probably be eligible to pay a rebated rent
  • Less than 25 per cent of your household income: you will have to pay the market rent amount.

What does my household income include?

Your total household income includes the combined incomes of all household members 18 years of age or over.  When working out your rent, we take most of your income into account.  Some income, such as payments made for specific purposes, will not be taken into account.

How do I apply for rebated rent?

  1. Fill in the application for rental rebate:
  2. Attach all the documents we need
  3. Give the application to your local office.

The guide to completing the application for rental rebate (.pdf) has information to help you. There is also an accessible version of the guide (.doc).

What happens next?

Once you have sent in your rental rebate form with all the documents needed, we will assess your eligibility based on the household income and assets information you provided.

We will write to you within 28 days to tell you if you are successful, your new weekly payment amount and when it starts. We will also tell you if your application then has you in credit or arrears.

Your housing services officer will write to you within 14 days if we need more information.

The guide to completing the application for rental rebate has information about when new weekly payments will start and when your rental rebate can be cancelled.

What happens if I am not happy with the decision you made?

Discuss this with your housing services officer. If you are still not happy, there is a process you can follow.

Go to Feedback, complaints and appeals for more information.

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