Dáil Éireann Debate, Thursday - 15 January 2026
400. Deputy Ruth Coppinger asked the Minister for Housing, Local Government and Heritage if he will consider increasing the current income threshold for studio apartments under the cost rental scheme, given issues regarding the current threshold (details supplied); and if he will make a statement on the matter. [3187/26]
View answerCost Rental is a key element of the Government's housing strategy to improve affordability in the rental sector and to provide secure, long-term homes for moderate-income households. The core principle of Cost Rental is that the rents cover the development, management, and maintenance costs of the homes, so that the long-term future of the homes is financially secure, and that rents are not subject to the pressures of the open market.
The primary eligibility condition for accessing Cost Rental housing is a maximum net annual household income (less income tax, PRSI, USC and superannuation contributions) of €66,000 in Dublin and €59,000 elsewhere.
However, since rents must cover costs in order for the model to be viable, a Cost Rental landlord must also be reasonably confident that a prospective tenant can afford to sustain rent payments every month over the long term. Therefore, under the current legislation, a Cost Rental landlord has final discretion to consider the suitability for a tenancy of an eligible applicant. Some Cost Rental landlords use their discretion to employ the commonly cited ‘rule of thumb’ metric of rent not exceeding approximately a third of net income.
My Department has issued guidance to landlords about how other factors such as rental history or savings may be relevant considerations in relation to cost rental applicants, and about the importance of clearly communicating the reasons why an eligible application has not progressed to the offer of a tenancy.
There are also other options available, in terms of social housing supports, for single person households with net incomes under €40,000 in Dublin.
In line with the Programme for Government commitment, the parameters for Cost Rental eligibility are kept under review to ensure the scheme effectively targets the intended tenant cohort.
