Annual updates to market rent values used for public housing
The Department of Communities updates market rent values each year to better align with market rents used within the private market and ensure tenants pay a fair and appropriate level of rent.
Approximately 95 per cent of public housing tenancies pay 25 per cent of their weekly assessable household income as rent and are unaffected by annual market rent updates.
The remaining five per cent of tenancies pay the assessed market rent value of the property.
When is market rent paid?
Market rent is paid where:
- it is less than 25 per cent of the weekly assessable household income;
- tenants and householders do not provide the income information required to calculate their assessable household income;
- tenants are found to be ineligible for public housing due to exceeding the income or asset limits; or
- tenant illegally sublet the property to another party
Market rent values are determined by Landgate, the Western Australian Land Information Authority.
Tenants affected by the changes will be notified of their new rent charges and the date from which the new rent will apply. Rent increases will be capped to $40 per week or 15 per cent of the current rent charge, whichever is reached first.
The following two examples show how the market rent update will impact the majority (around 94 per cent) of tenancies.
See more scenarios in this infographic.
Example 1: Mike, eligible public housing tenant
The market rent for the property Mike is living in has increased from $250 to $275. However Mike's rent remains unchanged at $200 as this is 25 per cent of his weekly assessable household income, and it is lower than both the current and new market rent valuations of the property.
Example 2: Sharon, eligible public housing tenant
The market rent for the property Sharon is living in has decreased from $250 to $235 per week. Sharon's rent remains unchanged at $200 per week due to 25 per cent of her weekly assessable household income being lower than the new market rent of the property.