Affordable Rental Housing Scheme 2026 is a sub-scheme under Pradhan Mantri Awas Yojana Urban (PMAY-U) run by Ministry of Housing and Urban Affairs. It provides dignified rental housing at affordable rates to urban migrants and poor families close to their workplace.
COVID-19 pandemic caused reverse migration of urban migrants and poor in the country. Urban migrants stay in slums, informal settlements, unauthorised colonies and peri-urban areas to save cost on housing. They need decent rental housing at affordable rate at their work sites.
To address this need, Ministry of Housing and Urban Affairs started Affordable Rental Housing Complexes (ARHCs), a sub-scheme under PMAY-U. This provides ease of living to urban migrants and poor in the industrial sector as well as in the non-formal urban economy, giving them access to dignified affordable rental housing close to their workplace.
In 2026, the scheme has been carried forward as the Affordable Rental Housing (ARH) vertical under Pradhan Mantri Awas Yojana Urban 2.0 (PMAY-U 2.0). The ARH vertical continues the agenda of ARHCs and provides affordable and dignified living spaces for urban dwellers who do not want to own a house but need housing for a short period. The official website of the scheme is arhc.mohua.gov.in.
Affordable Rental Housing Scheme User Guide
The scheme is implemented through two models. Details are given below.
- The Affordable Rental Housing Complex scheme is implemented through two models.
- First model uses existing Government funded vacant houses and converts them into ARHCs through Public Private Partnership or by Public Agencies.
- Second model covers construction, operation and maintenance of ARHCs by Public or Private Entities on their own available vacant land.
- Beneficiaries for ARHCs are urban migrants and poor from EWS and LIG categories.
- ARHCs are a mix of single and double bedroom Dwelling Units and Dormitory of 4 or 6 beds including all common facilities, used exclusively for rental housing for a minimum period of 25 years.
- These complexes ensure a dignified living environment for urban migrants and poor close to their workplaces at affordable rates.
- This opens up existing vacant housing stock and makes it available in urban space. It also creates new investment opportunities and encourages Private and Public Entities to use their vacant land for developing ARHCs.
Under the ARH vertical of PMAY-U 2.0, eligible beneficiaries include urban migrants, homeless and destitute people, industrial workers, working women, construction workers, urban poor such as street vendors and rickshaw pullers, and people working with market and trade associations, educational and health institutions and the hospitality sector.
Benefits Under Affordable Rental Housing Scheme 2026
Under the ARH vertical, the initial affordable rent is fixed by the local authority or entity based on a local survey. After that, rent is increased biennially by 8 percent, subject to a maximum increase of 20 percent in total over a period of 5 years from the date of signing the contract.
A Technology Innovation Grant (TIG) of ₹3,000 per square metre on carpet area (including internal infrastructure) is released by Ministry of Housing and Urban Affairs as Central Assistance. State and UT governments release ₹2,000 per square metre as part of State Share for construction of ARH projects.
To encourage participation of Public and Private entities, the government offers incentives such as single window and time bound approval of building plans within 60 days, user charges and property tax at par with residential projects, 50 percent additional FAR with TDR facility free of cost, and exemption from land conversion and statutory charges.
As per the latest update, 12,846 units have been approved under Model 2 of the ARH vertical. A TIG of ₹116.807 crore has been approved as Central Assistance for construction of these 12,846 new ARH units in Andhra Pradesh, Gujarat and Maharashtra.
Highlights of Affordable Rental Housing Scheme
| Detail | Information |
|---|---|
| Scheme Name | Affordable Rental Housing Scheme (ARHC / ARH) |
| Launched By | Ministry of Housing and Urban Affairs |
| Under | Pradhan Mantri Awas Yojana Urban (PMAY-U) |
| Beneficiaries | Urban migrants and poor from EWS and LIG categories |
| Models | Two models (vacant government houses and vacant land) |
| Rental Period | Minimum 25 years |
| Official Website | arhc.mohua.gov.in |
FAQs
Who can apply under Affordable Rental Housing Scheme?
Urban migrants and poor families from EWS and LIG categories can apply. This includes industrial workers, working women, construction workers, street vendors, rickshaw pullers and other urban poor.
What is the minimum rental period for ARHCs?
ARHCs are used exclusively for rental housing for a minimum period of 25 years.
What is the official website of the scheme?
The official website is arhc.mohua.gov.in.