Affordable Rental Housing Complex (ARHC) Scheme 2026 - Apply Online for Rental Housing under PMAY-U 2.0

Affordable Rental Housing Complex (ARHC) Scheme is a sub-scheme under the central government's Pradhan Mantri Awas Yojana (Urban). It provides affordable rental accommodation to migrant workers and urban poor near their place of work, so that they can live with dignity without spending too much on rent. The scheme is now part of the Affordable Rental Housing (ARH) vertical under PMAY-U 2.0, which was launched on 1 September 2024.

ARHC scheme is implemented by converting government funded vacant houses in cities into affordable rental housing complexes, and by encouraging public and private entities to build rental housing on their own vacant land. This helps migrant labourers, industrial workers, street vendors, students and other urban poor get houses on lower rent in the area where they work. Ministry of Housing and Urban Affairs (MoHUA) runs this scheme.

Affordable Rental Housing Complex Scheme 2026 Apply Online

Urban migrants and poor families often find it hard to get a house at an affordable rent in cities. To solve this, the central government launched the Affordable Rental Housing Complex Scheme 2026 under PMAY-U. This article explains the scheme details, how to apply, who can apply, and the latest updates.

PMAY Affordable Rental Housing Complexes (ARHC) Application / Registration

Just like applications are invited for other housing schemes, the central government invites ARHC scheme applications from private and public entities. Here is the complete process to fill the ARHC registration form and make a subsequent login:-

STEP 1 - Visit the official website at https://arhc.mohua.gov.in/

STEP 2 - On the homepage, click on the "Registration" or "Login" tab present in the main menu.

STEP 3 - The Affordable Rental Housing Complexes Scheme Login page will appear as shown below:-

STEP 4 - On this page, scroll over the "Register" tab and click on the "Private / Public Entities" link as shown above. Afterwards, the ARHC Scheme online registration form will appear as shown below:-

STEP 5 - Here applicants can enter all the details accurately and submit the completely filled in ARHC registration form to complete the application process.

To get a house on rent, migrant workers and urban poor will have to fill the ARHC application / registration form. These online application forms are invited through the MoHUA official website or through the dedicated portal arhc.mohua.gov.in. As soon as the apply online form filling process starts, the details are updated here.

Ministry of Housing and Urban Affairs (MoHUA) has issued detailed guidelines for this PM Awas Yojana ARHC Scheme 2026. Finance Minister Nirmala Sitharaman had announced this PMAY ARHC Scheme as a component of Atmanirbhar Bharat Abhiyan (self reliant India campaign) on 14 May 2020.

Latest Update on ARHC Scheme under PMAY-U 2.0

Based on the learning from nine years of PMAY-U implementation, MoHUA has revamped the scheme and launched PMAY-U 2.0 'Housing for All' Mission with effect from 1 September 2024. This new mission aims to construct, purchase and rent a house for 1 crore additional eligible beneficiaries at an affordable cost through four verticals - Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH) and Interest Subsidy Scheme (ISS).

The ARH vertical of PMAY-U 2.0 aims to build rental housing projects for EWS / LIG beneficiaries, including migrant workers and other poor people who do not want to own a house but need housing for a short period. Under Model 1, so far 5,648 existing government funded vacant houses have been converted into ARHCs in different states and union territories. Under Model 2, MoHUA has approved proposals for 82,273 new ARHC units in 7 states, of which 35,425 have been completed and the rest are at different stages of construction. A total of ₹173.89 crore of Technology Innovation Grant (TIG) has been sanctioned, of which ₹83.26 crore has been released under ARHCs.

As per the scheme guidelines, the initial affordable rent of ARHCs is fixed by the local authority based on a local survey. After that, rent is increased biennially by 8%, subject to a maximum increase of 20% in total over a period of 5 years, effective from the date of signing the contract. The same method is followed over the entire concession period of 25 years.

Principles and Objectives of PM ARHC Scheme 2026

The central government has launched the PM ARHC scheme with the following principles and objectives:-

1. To address the vision of "AatmaNirbhar Bharat Abhiyan" by creating a sustainable ecosystem of affordable rental housing solutions for urban migrants and poor.
2. To achieve the overall objective of "Housing for All" by covering the need of affordable rental housing for urban migrants and poor. ARHCs will give them a dignified living with required civic amenities near their place of work.
3. To create a good environment by giving incentives to public and private entities to use their investment for creating affordable rental housing stock to take care of their own workforce needs and also serve nearby areas, if they have vacant land available.

Checkout and download Affordable Rental Housing Scheme Guidelines PDF

Coverage and Duration of Affordable Rental Housing Complex Scheme

A) ARHCs will be implemented in all statutory towns as per Census 2011 and towns notified later, notified planning areas, and areas of development / special area development / industrial development authorities. States and union territories may consider any project as ARHCs in any other areas after due notification.

B) Projects under ARHCs will be applicable for consideration and funding till the PMAY (U) Mission period, which was up to March 2022. Under PMAY-U 2.0, the ARH vertical continues this work with a new mission period.

C) Projects approved during the Mission period will continue for another 18 months to enable fund release and completion of projects.

Major Beneficiaries of Affordable Rental Housing Complexes Scheme

Beneficiaries for ARHCs will be from Economically Weaker Section (EWS) and Low Income Group (LIG) who are urban migrants or poor. They include labour, urban poor (street vendors, rickshaw pullers, other service providers etc.), industrial workers, and migrants working with market / trade associations, educational / health institutions, hospitality sector, long term tourists / visitors, students or any other persons of such category.

Preference under the scheme is given to persons belonging to Scheduled Castes, Scheduled Tribes, Other Backward Classes, widows and working women, Divyang, and minorities, subject to beneficiaries being from EWS or LIG segments as set by the government.

Cabinet Approval for ARHCs Scheme under PM Awas Yojana

An affordable rental housing scheme for migrants who went back to their home states during the COVID-19 lockdown was approved by the Cabinet on 8 July 2020. The Affordable Rental Housing Complexes (ARHCs) Scheme under the Ministry of Housing and Urban Affairs (MoHUA) is a sub-scheme under the Pradhan Mantri Awas Yojana (Urban). The ARHC scheme was implemented with an estimated expenditure of ₹600 crore. Initially, the ARHC scheme aimed to cover around 3 lakh beneficiaries.

What is the Need for PM Affordable Rental Housing Complexes Scheme

COVID-19 pandemic resulted in a massive reverse migration of workers and urban poor in the country. These labourers come from rural areas or small towns to seek better employment opportunities in urban areas. Usually, these migrants live in slums, informal or unauthorised colonies, or peri-urban areas to save rental charges. They spend a lot of time on roads by walking or cycling to workplaces, risking their lives to cut down on expenses.

A large part of the workforce in manufacturing industries, service providers in hospitality, health, domestic or commercial establishments, construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiaries under ARHCs.

Affordable Rental Housing Complexes Scheme Details

The government has launched this ARHC scheme under PM Awas Yojana to make sure of ease of living at an affordable rent by the following measures:-

• Converting government funded housing in the cities (JnNURM / RAY) into Affordable Rental Housing Complexes (ARHC) under PPP mode through a concessionaire.
• Giving incentives to manufacturing units, industries, institutions, associations to develop Affordable Rental Housing Complex (ARHC) on their private land and operate it.
• Giving incentives to state government agencies / central government organizations on the same lines to develop Affordable Rental Housing Complexes (ARHC) and operate them.

Implementation of ARHC Scheme 2026

The ARHC scheme has a two-pronged approach for effective implementation. First, the existing vacant government funded housing complexes are converted into ARHCs through a concession agreement for 25 years. As per the official data, there are 1.2 lakh such government houses available under Jawaharlal Nehru National Urban Renewal Mission (JNNURM), PMAY and other state housing schemes. Out of these, Maharashtra has 35,000 accommodations while Delhi has 30,000 accommodations.

The concessionaire makes the complexes liveable by repair, retrofit and maintenance of rooms. Moreover, the government fills up infrastructure gaps like water, sewer / septage, sanitation, roads among others. States and union territories select the concessionaire through clear bidding. Complexes will revert to Urban Local Bodies after 25 years to start the next cycle earlier or to run on their own.

Secondly, special incentives like use permission, 50% additional Floor Area Ratio or Floor Space Index, concessional loan at priority sector lending rates, tax relief at par with affordable housing among others are offered to private and public entities to develop ARHCs on their own available vacant land for 25 years. ARHCs create a new ecosystem in urban areas making housing available at an affordable rent close to places of work, and cut down unnecessary travel, congestion and pollution.

New Job Opportunities through ARHC Scheme

The investment under ARHCs is expected to create new job opportunities. Government funded vacant housing stock is converted into ARHCs for economically productive use. The ARHC scheme creates a good environment for entities to develop ARHCs on their own vacant land, which enables new investment opportunities and promotes entrepreneurship in the rental housing sector.

As the detailed information about the ARHC scheme is out, check the PMAY Affordable Rental Housing Complexes (ARHC) scheme details through the link here - https://pmay-urban.gov.in/uploads/guidelines/Operational-Guidelines-of-ARHCs.pdf