Integrating State Rental Housing with the Private Market

Jozsef Hegedus, Raymond J. Struyk, Ivan Tosics

This report describes and analyzes a proposed housing allowance system for Hungary that would reform the rental sector along market lines while protecting low-income families from high rent payments through a housing allowance program. The research is based on data developed especially for this study by the Hungarian government. The study simulates numerous housing allowance designs, one set undertaken for the first year in which housing allowances would be introduced and one for the third year, the point at which rents paid on state rentals were expected to approach market levels.

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