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Our Affordable Housing Rental Scheme will help address the gap in housing affordability and supply for many low to moderate income households.

Frequently Asked Questions

Once an applicant correctly submits an application for a new home, the application will enter a ballot system. A ballot is where applicants will be randomly chosen from a list. In this way, all eligible applicants will have equal chance of being offered an affordable home.

Under the Planning and Environment Act 1987, ‘affordable housing’ is a broad term describing housing suitable for very low to moderate income households and priced (whether purchased or rented) so these households can meet essential living costs. 

Income thresholds are updated annually in relation to median household income per Australian Bureau of Statistics (ABS) data and can be found here

Rents will be based on the location and number of bedrooms per home. Rent will be set at least 10 per cent below the market rent in metropolitan Melbourne and at market rent in regional Victoria, with the additional protection of a cap at 30 per cent of a median income. This will ensure that homes are affordable wherever they are located.  

The homes do not qualify for Commonwealth Rent Assistance as the homes are owned by Homes Victoria. 

Median market rent means the middle price for all market rents in the area. The Affordable Housing Rental Scheme currently uses the quarterly median rents by local government area reports to understand median rents, which are published here.

Fixed-term rental agreements of up to three years will provide more security and stability for renters compared to most existing private rental contracts. A three-year lease paying an affordable rent, allows renters time to save for a house deposit or move back to a private rental.

Eligible renters will be able to roll their lease agreement over to another three year term, once the first three years are complete.

Three year leases provide the Victorian Government with a strong platform to attract co-investment to meet Victoria’s longer term affordable housing needs with other not for profit or private sectors.

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 tenancy manager will be responsible for all housing maintenance.

The initial 2,400 affordable rental properties will be located across Victoria, with at least 500 of the new homes located in regional communities. 

The first affordable rental properties are anticipated to be listed in metropolitan Melbourne and regional Victoria from early 2023. Affordable homes will continue to be listed online throughout 2023 and 2024, with the majority of properties coming online by 2025.