Housing Benefits

Housing benefit is financial support towards your rent. It is a so-called subsidy and does not have to be paid back. The money is available to people who do not earn enough to pay the rent for their flat or room (in a shared flat) themselves. Therefore, people for whom the state already covers the rent do not receive housing benefits. This applies, for instance, to recipients of “Bürgergeld”, BAföG, social assistance or Basic provision for old age (“Grundsicherung im Alter”) and in the event of reduced earning capacity as well as benefits under the Asylum Seekers Benefits Act. 

The Federal Ministry of Housing, Urban Development and Building has compiled the most important questions and answers on housing benefits on its website. Further information is also available from the consumer advice centre (Verbraucherzentrale) and the Sozialverband Deutschland.

The following groups are currently entitled to housing benefits:

• People who do not earn enough and have previously paid their rent entirely themselves
• Pensioners with a low pension
• People in retirement and care homes with low incomes
• Students who cannot receive BAföG and do not live with their parents
• Trainees who cannot receive a vocational training allowance and do not live with their parents
• Recipients of unemployment benefits I
• Recipients of short-time work allowance

The amount of housing benefit you receive is calculated individually for your case. It depends on how many people live with you, as well as the rent amount, your income, and the rent prices in your area. You can use the Housing Benefits Calculator from the Federal Ministry of Building and Housing (BMWSB) to determine the approximate amount. If you are unsure whether you are eligible for housing benefits, apply anyway. A rejection has no disadvantages for you.

Generally, the lower your income and the higher your rent, the more housing benefits you can receive. However, there are maximum limits for rent and income depending on where you live.

Good to know: The Housing Benefit Plus Reform (“Wohngeld-Plus-Reform”) came into force on 1 January 2023, meaning many more people will receive housing benefits. A BMWSB flyer explains the most critical points of this reform. Housing benefits have doubled due to the reform, on average from €190 to €370 per month. One reason for this is that the income limit up to which you can apply for housing benefits has been raised. Housing benefits also include a heating cost component, which is added to your housing benefit. You do not have to apply for anything.

For some flats, a ‘climate component’ (“Klimakomponente”) is also added. This is intended to help ensure that climate-neutral refurbishment does not disadvantage low-income people. This means that you get some extra money if your rent has become more expensive due to climate-neutral refurbishment. In this case, 40 cents per square metre of ‘climate component’ will be added to the housing benefit.

Housing benefits are also set to increase again on 1 January 2025. The federal government plans to increase it by an average of €30.

You apply for housing benefits at the responsible authority in your place of residence. The name of the authority varies depending on the federal state, e.g. “Wohngeldamt”, “Wohngeldstelle” or “Wohngeldbehörde”. This is usually located in the town hall (“Rathaus”) or citizens' office (“Bürgeramt”). Many housing benefit offices now also offer the option of applying online. 

You can find the proper authority in your area by searching the Internet. Enter the words ‘Wohngeldstelle’ and the name of your place of residence in the search bar. Alternatively, you can also use the federal government’s portal (Bundesportal) and enter ‘Wohngeld beantragen’ and the name of the federal state where you live in the search bar. The search result will then show you where you can submit your application.

Make your application as early as possible. This is because it often takes several weeks before you receive money.

Please note: If you receive benefits under the Asylum Seekers Benefits Act, you will only receive housing benefits in exceptional cases.

You should attach the following documents to your application for housing benefit:

• Identity card or passport for identification purposes
• Copy of the rental contract
• Rent certificate (“Mietbescheinigung”), to be completed by the landlord (stating the size and year of construction of the accommodation
• Proof of the amount of rent (e.g. bank statements or rent certificate from the landlord)
• the completed application for housing benefits
• Registration certificate (“Meldebescheinigung”) confirming that you are registered in your current home– you can obtain this free of charge for the housing benefit application. More information can be found on the federal government’s portal
• Proof of income (e.g. training or employment contract, payslips, pension statement)
• Proof of ancillary costs for the flat, if these are paid separately

Depending on your life situation, further documents may be required, such as tax assessment notices, child benefits, so-called “Kinderzuschlag” or parental allowance notices and pension notices.

Good to know: Electricity and gas costs, as well as the costs for heating and hot water, are not considered when calculating housing benefits, so you do not need to enclose any proof of them with your housing benefit application. Since 1 January 2023, however, there has been a so-called heating cost component, which is paid in addition to housing benefits and does not have to be applied for separately to help with heating costs. The amount of the heating cost component depends on how many people live in a flat.

Yes, the Housing Benefit Office can ask to see bank statements to ensure that your income and expenditure details are correct. This is to check whether you are actually entitled to housing benefit. You can black out certain personal expenses, but all relevant income must be recognisable.

A provisional notice of housing benefit is issued if not all documents are available or if your income could change in the foreseeable future. Such a provisional notice means that you will initially receive housing benefits for a limited period until a final decision can be made. As soon as all the information is available, the final decision will be issued.

The final decision may result in both additional payments and repayments.

The processing time for a housing benefit application varies depending on the city and municipality. It usually takes 4 to 6 weeks for your application to be processed. Especially in large cities such as Hamburg, Berlin, Cologne or Munich, it can also take several months.

As soon as the application has been approved, the housing benefit is paid retroactively from the month in which the application was submitted.

Housing benefit is usually granted for 12 months and paid from the first month of the application. However, housing benefits can also be granted for 24 months if your living conditions– in particular, your income and the amount of your rent– are expected to remain the same.

Once this period has expired, you must submit a new application if you wish to continue receiving housing benefits. It is essential that you apply in good time before the end of the authorisation period so that there are no interruptions in the payment of housing benefits. It is best to apply to the relevant housing benefit office around 2 months before the end of the authorisation period.

No, housing benefit is usually paid to the tenant in advance. However, some housing benefit recipients prefer the housing benefit to be paid directly to the landlord– this is also possible if the housing benefit recipient agrees in writing. In a few exceptional cases, it is even possible without consent.

You must inform the Housing Benefit Office of any significant changes affecting your entitlement. That includes:

• Changes in income (e.g. salary increase of more than 15 per cent, loss of job)
• Changes in rent (e.g. rent increase of more than %10)
• Changes in the number of household members (e.g. people moving in or out, birth of a child)

If these things change, your housing benefit entitlement could also change. For example, depending on the developments, the housing benefit for the current period could be increased, reduced or cancelled. Timely notification is essential to avoid repayments or penalties.

If you move to a new flat or shared flat, you must apply for housing benefits for the new flat immediately.