nras property
Photo: Unsplash/Siddharth Bhogra.

In Australia, National Rental Affordability Scheme (NRAS) rental properties are available for low and moderate income households – people who may find it hard to pay market rental rates.

Who can rent an NRAS property? 

NRAS rental properties are available to eligible low to moderate income earners.

To be eligible to rent an NRAS property, potential tenants must provide written evidence of their gross income (both with their initial application and every year afterwards) to the tenancy manager; and must not exceed the income limits for their household composition.

The total income of all tenants in an NRAS rental property is used to calculate the overall household income for that property.

Income limits for eligible tenants are based on the gross income of each household and accommodate a range of low to moderate income earners.

Tenants for NRAS properties are selected by investors and their tenancy managers. Tenancy managers will review tenancy applications and maintain waiting lists for NRAS homes, but the final decision to choose a tenant is always made by the dwelling owner.

Do the income limits for NRAS tenants have exceptions?

No. In order to be eligible to rent an NRAS dwelling, a tenant’s gross household income must not exceed the applicable household income limit. For existing tenants, gross household income may exceed the applicable income limit.

However, if the limit is exceeded by more than 25 per cent in two consecutive years, a tenant will cease to be an eligible tenant.

Can I be evicted from my NRAS property?

Yes, NRAS tenants are no different to any other type of tenant. If you are an NRAS tenant, you are subject to the normal tenancy legislation in your respective state or territory in which the property is located.

In fact, the rights and obligations of the tenancy laws are applicable to you (as the NRAS tenant) and your NRAS property landlord. To retain the NRAS discount to market retntal, you need to properly maintain the property.

What are the income limits for NRAS tenants?

To find the gross income limit for households to rent NRAS properties, see the NRAS Regulations. Income levels are assessed against gross income limits, based on the household composition.

So, for NRAS purposes, a ‘househould’ is considered to be all persons that ordinarily reside in the home. All persons who ordinarily reside in an NRAS home must have their income included as a member of the household to help determine the gross household income.

The household income limits are indexed each year, according to percentage changes of the All Groups component of the Consumer Price Index. This way, the limits effectively maintain the same target group of tenants over the life of the Scheme.

For more information

Should you require any additional information about NRAS, please visit the Australian Government’s Department of Social Services website.

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