Integrated Public Rental Fees at 35~90% of Surrounding Jeonse and Monthly Rent Market Prices

Differentiation by Resident Income Level... Administrative Notice Until the 18th

[Asia Economy Reporter Kangwook Cho] The rent for integrated public rental housing has been set at 35-90% of the surrounding area's monthly rent and lease market prices.

The Ministry of Land, Infrastructure and Transport announced on the 1st that it will conduct an administrative notice on the rent standards for integrated public rental housing until the 18th.

Integrated public rental housing was introduced to unify the previously complex types of public rental housing (permanent, national, happiness) into one, and to improve eligibility criteria and rent systems from the perspective of tenants. Following the eligibility criteria finalized in April, the establishment of rent standards will complete the basic system of integrated public rental housing.

According to Article 49 of the Special Act on Public Housing and Article 44 of its Enforcement Decree, the government sets the standard rent, which is the upper limit of rent (including rental deposit), and project implementers such as LH determine the actual rent within the range below the standard rent.

The standard rent is set based on the monthly rent and lease market prices of the surrounding area and is differentiated according to the income level of residents within the range of 35-90% of market prices. In particular, to reduce the housing cost burden for low-income groups, the increase rate of rent is set lower in the lower income brackets.

Looking at the proposed rent-to-market price ratios: rent for those below 30% of the median income is set at 35% of market price. Also, Δincome 30-50% rent 40%, Δincome 50-70% rent 50%, Δincome 70-100% rent 65%, Δmarket price 100-130% rent 80%, Δmarket price 130-150% rent 90%, etc.

Project implementers have established grounds to impose reduced rent if they judge that the market price in the area is excessively high compared to residents' ability to pay.

Additionally, the ratio of rental deposit to monthly rent is basically presented as 35:65 at the time of tenant recruitment announcement, but can be mutually converted if the tenant wishes.

To reflect market price changes over time in the rent, project implementers will investigate market prices annually and update the standard rent. However, the rent increase rate at contract renewal cannot exceed the range (5%) stipulated by the Special Act on Public Housing.

Even if residents exceed the initial eligibility criteria (income, asset standards, etc.) while residing, if they wish to continue living, they will bear an additional rent to some extent but will not be forcibly evicted and can live with peace of mind for a long time.

During the administrative notice period, opinions can be submitted via the Ministry of Land, Infrastructure and Transport website, mail, or fax.

Kim Hongmok, Director of Housing Welfare Policy at the Ministry of Land, Infrastructure and Transport, said, “Once the rent standards are established, the institutional foundation for supplying integrated public rental housing will be laid.”

This content was produced with the assistance of AI translation services.