Homes Victoria is increasing availability of affordable rental homes for eligible Victorians that may be struggling to enter or maintain access to the private rental market.
Homes Victoria affordable rentals are high quality homes that offer stable rental agreements to eligible Victorians, in locations they’re needed.
Introducing Homes Victoria affordable
As part of our landmark $5.3 billion Big Housing Build, we’re taking a lead role through innovative partnerships to grow the supply of new affordable rental housing across the state.
Affordable rental housing means eligible Victorians can access a highly competitive alternative to high-demand and higher-priced private rental housing.
Homes Victoria affordable eases housing affordability and supports many Victorians struggling to access a stable, affordable place to call home.
More housing options, more choice, more flexibility
- All Homes Victoria affordable homes start affordable and stay affordable: eligible renters have guaranteed secure tenure for three years with the ability to extend their lease for a further 3 years.
- While rents will vary based on location and property size, costs will never be higher than the market rent for the area with the additional protection of rent a cap set at 30 per cent of a median income.
- A three-year lease paying an affordable rent provides renters with time to save for a house deposit or move back to a private rental.
Frequently asked questions
Victorians need to first meet the eligibility criteria for a Homes Victoria affordable home. This ensures that homes are targeted to the people who qualify for them, and applicants are treated fairly throughout the application process.
Renters that meet the eligibility criteria can apply for homes that suit their needs.
Eligible renters can apply for multiple homes but must only fill out one entry for any of the homes / apartments that meet their needs.
Entries are then placed in a ballot for the available homes.
Under the Planning and Environment Act 1987, ‘affordable housing’ is a broad term that describes housing suitable for very low to moderate income households and housing that is priced (whether purchased or rented) so these households can meet essential living costs.
Income thresholds are updated each year to reflect median household income per Australian Bureau of Statistics (ABS) data. View the Victoria Government Gazette No. G 25 to find out more information about income thresholds.
Rent will be set at least 10 per cent below the market rental cost in metropolitan Melbourne and at market rent in regional Victoria. This will ensure that homes are affordable wherever they are located.
The homes do not currently qualify for Commonwealth Rent Assistance under current Commonwealth Government policy.
Fixed-term leases of up to three years provide more security and stability for renters compared to most existing private rental contracts. With affordable rent costs fixed for three years, renters have time to save for a house deposit or move back to a private rental.
Once the first three years are complete, eligible renters will have the option to roll their lease agreement over to another three-year term.
Three-year leases provide the Victorian Government with a strong platform to attract not for profit or private sector co-investment to meet Victoria’s longer term affordable housing needs.
If renters choose, they can end their lease at any time, giving 28 days notice to their tenancy manager of their intention to move out.
The next available affordable homes will be located in Heidelberg and Hawthorn.
Renters are offered a three-year rental agreement. In the first year, the rent will be the amount advertised when the property was listed.
Rent will be increased annually, but no more than 5%.
Following the end of the three-year agreement, eligible renters who wish to stay in the property may enter into a new 3-year rental agreement.
At that point, the rent will reset to the market rent in regional Victoria, or 10% discount to market in metro Melbourne, with the protection of the rent cap of no more than 30 per cent of a median income.