Income Cap for Social Housing
The **income cap** for social housing determines the maximum income that tenants in social rental housing may have. Do you exceed this cap? Then you risk having to leave your home. Find out here how it works and what your rights and obligations are.
In the Netherlands, the social rental sector is intended for people with a **modest income**. To ensure that these homes remain available for those who really need them, an **income cap** applies. This cap is a percentage of the **gross income** that tenants in social housing may have. When your income exceeds this cap, you must leave the home or switch to a home in the **private sector** (with a higher rent).
The income cap is an important rule in **tenancy law** and is set by the government. The aim is to keep social housing accessible to people with a low or modest income. In this article, we explain how the income cap works, what rules apply, and what you can do if your income increases.
Legal Basis: What Does the Law Say?
The income cap is regulated in the **Rent Allowance Act** and the **Housing Act**. In addition, the **housing association's rental rules** (the landlord of social housing) play an important role. The most important laws are:
- Housing Act (art. 1.1 and 1.2): Contains the general rules for social rental housing and its allocation.
- Rent Allowance Act (art. 12): States that your income may not be too high to be eligible for social rental housing.
- Housing association's rental regulations: Every social landlord (usually a housing association) has its own rules regarding the income cap. These are often stricter than the statutory minimum standards.
The **income cap** itself is not laid down in the law, but is determined by the **housing association** and may vary by region. Generally, it is between **110% and 130% of the income assessment figure** (IAF). The IAF is a benchmark for the income you may have to qualify for social housing.
Important: The income cap is checked annually. If your income increases, you must report this to your housing association. If you exceed the cap, the housing association has the right to terminate your tenancy or impose an **income cap obligation** on you.
How Does the Income Cap Work in Practice?
The income cap is calculated based on your **gross income** (before taxes and premiums have been deducted). The income of all household members is taken into account, including:
- Wages from employment
- Benefits (e.g., unemployment benefit, social assistance, state pension)
- Income from business
- Interest and dividends
- Allowances (e.g., child benefit)
Example: Suppose the income cap of your housing association is **120% of the IAF**. In 2024, the IAF is approximately €2,600 gross per month for a single person. Then your gross income may be at most:
€2,600 × 1.20 = €3,120 gross per month
If your income exceeds this cap, you must take action. The housing association may give you an **income cap obligation**: you must then reduce your income or switch to a home in the private sector within a certain period (usually 1 to 2 years).
Examples of Income Caps by Household Composition (2024)
| Household Composition | Income Cap (120% IAF) | Maximum Gross Income per Month |
|---|---|---|
| Single Person | 120% of €2,600 | €3,120 |
| Couple (no children) | 120% of €3,200 | €3,840 |
| Family with 2 children | 120% of €3,800 | €4,560 |
Note: These amounts are indicative. Always check the exact income cap in your tenancy agreement or request it from your housing association.
Your Rights and Obligations Regarding the Income Cap
Rights of the Tenant
- Right to Information: You have the right to a clear explanation of the income cap and how it is calculated.
- Right to Object: If you disagree with the calculation of your income or the income cap, you can object to the housing association.
- Right to Consultation: If your income increases, you have the right to an **income cap discussion** with the housing association to discuss options (e.g. in