a detailed guide to the tenancy conditions and rent for social housing by type. whether you're looking for a permanent lease, social rent, or happy home, find out everything you need to know, from income criteria to deposit loans.
what is social housing?
the dream of owning your own home is a big one, but the reality is not so easy. With high rent prices, the burden of housing costs keeps getting bigger and bigger. That's where public rental housing comes in, a housing stability system organized by the government.
public rental housing is a system that provides and manages housing directly by the government or a public organization, and allows people to live in it for a certain period of time at a lower price than the market rate. There are various types of public rental housing available depending on income level and life cycle, so you can choose the right one for your situation.
the main types of public housing
there are several different types of public housing, depending on who lives in them and the income criteria. there are permanent rental housing for low-income people, national rental housing for people on low to moderate incomes, happy houses for young people and newlyweds, and converted rental housing that could become your home in the future.
each type has different tenancy conditions, lease lengths, and rent levels, so it's important to choose the right type for your situation.
explore the tenancy requirements for public housing
the biggest question you'll probably have is whether or not you're eligible to apply. There are two main types of public housing: income-based and asset-based.
what are the income criteria?
the income test is based on the median income, which is published annually by the government, but it's important to note that the income test varies depending on the type of housing.
permanent rented housing is aimed at those on the lowest incomes, so the threshold is 30 percent or less of the median income. social rented housing is for people on low to moderate incomes, with a threshold of 70 percent of median income or less. Happy Homes for young adults and newlyweds have a higher income threshold, with a threshold of 120 percent of median income or less.
check asset requirements
having a low income doesn't mean you're guaranteed to get in - you'll also need to have a certain amount of assets, including real estate, cars, and financial assets.
asset standards vary by neighborhood and type, but usually include a total asset limit and a car value test. you must also be a member of a household without a home.
how long can I live in public housing?
how long can you expect to live in public housing? This also varies by type.
lease lengths by type
permanent housing, as the name suggests, offers the longest lease term. you can live there for up to 50 years, giving you virtually lifelong housing security. Happy Homes are renewable every two years for up to 20 years.
national rental housing has a 30-year lease, and long-term rental housing has a 20-year lease. it is recommended that you choose the right type of housing according to your life cycle and housing plan.
you can sell your home
not all social housing is available for rent. You can rent for 5 or 10 years before converting to a home for sale, which is a great way to live in a rental property and make it your own.
you can apply for a converted rental home if you are a member of a homeless household that meets the income and asset criteria. you can also check out young people's rental housing or newlyweds' rental housing.
social housing rents and deposit levels
social housing isn't free - you'll need to pay a security deposit and monthly rent - but the best part is that it's much cheaper than the market rate.
60 to 80 percent of the market rate
in the case of happy housing, rents are set at 60 to 80 percent of the market rate. for example, a newly built happy house in Seoul that was recently supplied, the deposit was about KRW 91.48 million and the monthly rent was about KRW 130,000 for a 30-square-meter private area.
permanent rental housing or national rental housing is even cheaper than this. since it is targeted at people with lower income levels, the rent burden is also lower.
you can get a deposit loan
even if you're paying below market rate, a security deposit of thousands of won can be a financial burden. that's where security deposit loans come in.
just like regular rent deposits, security deposits for social housing can be borrowed. in addition to the low-interest government-backed funded loans, conventional lenders offer security deposit loans for social housing. You can also get preferential rates depending on your income level.
frequently asked questions
Q. where can I apply for public rental housing?
A. You can apply through the Korea Land and Housing Corporation or your local housing and urban corporation's application website. you can apply online within a certain period of time when a recruitment notice is published.
Q. what happens if my income increases while living in public rental housing?
A. If your income increases after you move in, you won't have to move out immediately. However, your rent may be increased if your income exceeds the income threshold, and you may be restricted from renewing your lease if your income exceeds a certain level.
Q. what is the main difference between social housing and permanent housing?
A. The main difference is the income thresholds for tenants. permanent rent is targeted at low-income households at or below 30 percent of median income, while social rent is targeted at low-to-moderate income households at or below 70 percent of median income. there are also differences in rent levels and home sizes.
Q. can a young adult apply for Happiness Housing alone?
A. Yes, you can. happiness Housing targets a wide range of people, including young adults, newlyweds, and seniors, and if you are between the ages of 19 and 39, you can apply as a single person.
Q. what if I want to move out of the public housing program?
A. You can move out whenever you want. however, you should check the length of your lease and the process for returning your security deposit and apply to leave at the appropriate time.
finding public housing that's right for you
public rental housing is a great way to help reduce your housing costs and provide stability. it's important to choose the right type of housing for you based on your income level, life cycle, and housing plans.
check the terms, conditions, and rent carefully, and take advantage of the various support programs offered by the government and public organizations to help you live a more stable life. check back often to see what's available in your neighborhood so you don't miss out on the application process.
do you have more questions about public housing? leave your questions in the comments and we'll be happy to answer them. Don't forget to subscribe to our newsletter to keep up to date with useful housing tips.