KEY TAKEAWAYS
| Question | Short Answer |
|---|---|
| What is Cost Rental? | A long-term, not-for-profit rental scheme with rents at least 25% below market rates. |
| Who is it for? | Middle-income households above social housing limits but struggling with private rents. |
| Income limits | €66,000 net in Dublin, €59,000 elsewhere. |
| Is it secure? | Yes – long-term security of tenure. |
| How are tenants selected? | Eligible applicants enter a lottery. |
| Can rent increase? | Yes, but only in line with inflation and no more than once per year. |
| Is it social housing? | No – it is a separate affordable rental tenure. |
What Is Cost Rental Housing?
Cost Rental is a type of Affordable Housing Scheme and a not-for-profit housing model introduced under the Affordable Housing Act 2021.
Instead of charging market rent, the landlord charges rent based only on:
- The cost of building the home
- The cost of managing it
- The cost of maintaining it
There is no developer profit included. Because of this structure, rents must be at least 25% below local market rates.
Who Delivers Cost Rental Homes?
Cost Rental homes are delivered by:
- Approved Housing Bodies (AHBs)
- The Land Development Agency (LDA)
- Local authorities
All tenancies are registered with the Residential Tenancies Board (RTB).
The Government aims to deliver 18,000 cost-rental homes by 2030 under the Housing for All Strategy.
How Does Cost Rental Work?
The total cost of building and managing the development is calculated over a minimum 40-year period.
Rent is then set to recover:
- Construction financing
- Maintenance
- Management
Rent must:
- Be at least 25% below local market rent
- Be affordable (no more than 35% of net household income)
- Only increase in line with inflation
Who Qualifies for Cost Rental?
You qualify if:
- Your net household income is below €66,000 in Dublin
- Or below €59,000 elsewhere
- You are not receiving HAP or Rent Supplement
- You do not own property
- Your household size matches the property
- Rent does not exceed 35% of your net income
- All household members live in Ireland
Net income means income after:
- Income tax
- USC
- PRSI
- Superannuation
Eligibility criteria are set under SI 755 of 2021.
What Size Property Can I Apply For?
We must match household size to property size.
General Guidelines
| Property Size | Suitable For |
|---|---|
| Studio | Single person or cohabiting couple |
| 1-Bed | Single person or couple |
| 2-Bed | Two adults, couple with 1–2 children |
| 3-Bed | Couple with children or 3 adults |
| 4-Bed | Larger families |
Over-occupation is not allowed.
Two children of the opposite sex where one is over 10 cannot share a bedroom.
How Do We Apply?
There is no central application system.
Each provider advertises homes separately on:
- LDA website
- AHB websites
- Local authority websites
- AffordableHomes.ie
Application Process
- Register interest
- Confirm eligibility
- Enter lottery
- If selected, submit full documents within 72 hours
- Assessment
- Offer
- Pay deposit (one month’s rent minus €50)
Only one application per household per property type is allowed.
Multiple applications for the same unit type result in disqualification.
What Documents Are Required?
You must provide:
- Proof of ID for all members
- Proof of address
- Proof of residency
- Proof of income
- Employer references
- Bank statements
- Landlord references
Failure to submit within the deadline results in offer withdrawal.
How Are Tenants Selected?
If there are more applicants than homes:
- All eligible applicants enter a lottery
- Names are randomly selected
- Selected applicants then undergo full eligibility verification
This ensures fairness in the selection process.
Security of Tenure – Can We Stay Long-Term?
Yes.
After the first 6 months, you can stay indefinitely if you:
- Pay rent
- Follow tenancy rules
Even if your income later exceeds the eligibility threshold, you do not have to move out.
This is one of the key strengths of Cost Rental.
How Is Rent Reviewed?
Rent:
- Cannot be reviewed within first 12 months
- Cannot be reviewed more than once per year
- Must follow inflation trends
If we disagree with a rent review, we can refer the matter to the RTB within 28 days.
Cost Rental FAQs
Is Cost Rental the Same as Social Housing?
No.
Cost Rental is aimed at middle-income households. Social housing is for lower-income households assessed by local authorities.
Is Cost Rental the Same as HAP?
No. HAP is a housing support payment. Cost Rental is a tenancy in a not-for-profit rental home.
Who Qualifies for Cost Rental?
Middle-income households:
- Below €66,000 (Dublin)
- Below €59,000 (elsewhere)
- Not receiving housing supports
- Not owning property
Who Gets the Highest Priority?
There is no priority system like social housing.
Selection is by lottery among eligible applicants.
Can We Apply If We Own Property Abroad?
No. Ownership of property anywhere disqualifies us.
What Happens If Our Income Increases?
We can remain in the property.
Eligibility is assessed at application stage only.
Can We Get Cost Rental If We Receive Rent Supplement?
No.
We cannot be receiving any social housing supports.
Is Cost Rental Available Nationwide?
Yes, but availability depends on developments being delivered in specific areas. Supply remains limited but expanding.
Final Thoughts
Cost Rental offers:
- Below-market rent
- Long-term security
- Transparent rent setting
- Stability for middle-income households
For households squeezed between social housing thresholds and private rents, Cost Rental is currently one of the most sustainable rental options in Ireland.
