Examples calculated rate greater than market rent
Example 1
Theresa is 36, and is working full-time as a manager in a bank. She earns $1,600 (after tax and ACC levies) per week, and also has a large inheritance which is generating income. Her household type is 'single 25 years and over'.
She is living in a Kāinga Ora property. The market rent rate for the property is $220 per week.
Note Theresa's rate of Income Related Rent is calculated using household income, as this produces a higher rate than the rate calculated using the Jobseeker Support rate.
Net weekly income earned | Assessable income |
Wages or salary | $1,600 |
Assessable income from assets | $100 |
Total of assessable income | $1,700 |
Calculation | Total |
Total of income under the income threshold - $555.15 (at 1 April 2026) | $555.15 |
25% of the income under the threshold | $138.78 = A |
Total of income over (the threshold) | $1,144.85 |
50% of the income total over threshold | $572.42 = B |
Portion of family tax credit | n/a = C |
62% of contributions from additional occupants | n/a = D |
Total before rounding (= A + B + C + D) | $711.20 |
Total calculated rate | $711.00 |
The rate of the Income Related Rent is above the market rent rate.
The rent that Kāinga Ora charges Theresa, must be the market rent rate of $220 per week.
Example 2
Suzanne is 28, and is working full-time as a call centre manager. She earns $2,200 (after tax and ACC levies) per fortnight from her job. Her household type is 'single 25 years and over'.
She is living in a community housing provider property. The market rent rate for the property is $330 per week.
Note Suzanne's rate of Income Related Rent is calculated using household income, as this produces a higher rate than the rate calculated using the Jobseeker Support rate.
Net weekly income earned | Assessable income |
Wages or salary | $1,100 |
Total of assessable income | $1,100 |
Calculation | Total |
Total of income under the income threshold - $555.15 (at 1 April 2026) | $555.15 |
25% of the income under the threshold | $138.78 = A |
Total of income over (the threshold) | $544.85 |
50% of the income total over threshold | $272.42 = B |
Portion of family tax credit | n/a = C |
62% of contributions from additional occupants | n/a = D |
Total before rounding (= A + B + C + D) | $411.20 |
Total calculated rate | $411.00 |
The rate of the Income Related Rent is more than the market rent rate.
The community housing provider can set the rent that they charge, but it cannot be higher than the market rent rate for the property, so no higher than $330 per week.
