Rent Policy

Rents for domestic units in the public sector are based on tenants' ability
to pay. Tenants may choose to live in the minimum space standard of
5.5 square metres per person internal floor area (IFA) at a median
rent-to-income ratio not exceeding 15 per cent, or seven square metres
per person IFA at a median rent-to-income ratio not exceeding 18.5 per
cent. With rents being charged at $63.40 per square metre for the newest
urban estates, $39.60 for the newest New Territories estates, and $36.40
for the newest Island estates, domestic rents represent, on average,
9.1 per cent of the median household income of Housing Authority
tenants. Rents are reviewed every two years,periodically taking into
account increases in rates, management and maintenance costs, location,
facilities, and tenants' ability to pay.

The Housing (Amendment) Ordinance 1997 provides that at least three
years must elapse after a rent determination before rent increases for
public rental housing estates managed by the Housing Authority can take
effect; and that the level of rent increase cannot be such as to cause the
overall median-rent-to-income ratio to exceed 10 per cent.

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