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Impact of the Rent Benefit Cap on Rent Increases

Rent increases affect the rent benefit cap and your housing allowance. Learn the rules for social and private sector housing, and how to appeal excessive increases.

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Impact of the Rent Benefit Cap on Rent Increases

Rent increases can affect your rent benefit cap, particularly in the social housing sector. Understand how price increases impact your benefit and what your rights are.

Rent Increase and Benefit

If your rent increases due to the annual adjustment (max. 5.3% in 2024), this may shift the benefit cap. The benefit compensates up to the quality deduction threshold (€808.06 monthly), but for higher rents, the benefit decreases if your income reaches the cap. For incomes above the threshold, you lose entitlement entirely for rents above €879.

Tenants in the private sector with starter rents (up to €390) often benefit longer, but increases are included in the calculation.

Legal Basis

Governed by the Good Landlordship Act and the Rent Pricing Regulation. Rent increases must be announced in writing before 1 May.

What Can You Do?

Review your rental agreement and lodge an objection with the Rent Tribunal for unreasonable increases. Use the rent benefit calculation tool to simulate future effects.