[For Foreigners] A Complete Guide to Rent Subsidy Programs in Japan
For foreigners looking for rental housing in Japan, as well as those already living in Japan, the "rent subsidy system" is something we definitely want you to know about.
This is because utilizing rent subsidy programs can potentially reduce your monthly rent payments.
This article provides a clear explanation of Japan's rent subsidy system, which is available to foreigners.
1.What is Japan's rent subsidy system? We'll also explain the difference between it and housing allowances.
A rent subsidy program is a general term for a system in which the national government, local governments, or companies subsidize a portion of the rent (or one-time expenses) for people living in rental housing.
Rent subsidy programs vary greatly depending on which organization implements them and who is eligible. However, please keep the following points in mind regarding rent subsidy programs.
- The difference between housing allowance and rent subsidy: A housing allowance is a benefit primarily provided by companies to alleviate the financial burden on their employees. On the other hand, a rent subsidy is a system where the national government, local governments, schools, NPOs, etc., provide partial rent assistance or housing to eligible individuals for the purpose of supporting their livelihoods.
- The difference between subsidies and grants: Subsidies are systems that provide financial assistance for a portion of the money actually spent, such as rent or tuition fees. Grants, on the other hand, are systems that allow people to receive money or services regardless of whether they have incurred expenses, provided they meet certain living conditions and requirements.
2.Rent subsidy programs available to foreigners and how to apply [National, local, company, and international student]
Now, let's take a look at specific rent subsidy programs available to foreigners and how to apply for them.
Government support system
One of the most representative government-sponsored rent subsidy programs is the "Housing Security Benefit."
The Housing Security Benefit is a public benefit program designed to support people who are at risk of losing their homes due to unemployment, reduced income, or other reasons.
Eligible recipients
- People whose income has decreased due to job loss or business closure, and who are at risk of losing their homes.
- If you are looking for a job but meet certain requirements
- People who are not receiving welfare benefits
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- In principle, nationality is irrelevant; foreigners can be eligible if they meet the income, asset, and job-seeking requirements.
- Practical decisions may vary depending on your residence status, period of stay, and whether you are a student or worker. For details, please check with the relevant local government office.
- The actual application process and payment procedures are handled by each local government, and the amount of payment varies depending on the type of residence and region.
How to apply
- For detailed information regarding requirements and other details, please check with the relevant local government office or website.
- Gather the necessary documents and submit them to the local government office.
- If the application is approved, the specified amount will be paid.
Local government rent subsidies and housing support
In addition to the national housing assistance grant, some local governments have their own rent subsidy programs.
Examples include rent subsidies for low-income individuals, "housing security benefits" for those temporarily unable to pay rent due to unemployment, etc., and settlement support for families with children and newcomers.
Recently, many local governments have introduced housing support programs for migrants, such as rent subsidies and relocation expense assistance. In these cases, the requirement for receiving support is not a reduction in income, but simply the act of relocating.
Foreign nationals may also be eligible if they meet the conditions.
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- Even when the applicant is a foreigner, factors such as the length of their period of stay may be taken into consideration.
- Eligibility requirements and benefit amounts vary by municipality. Please check with your local government office or website for details.
- Some local governments have established multilingual service counters that provide information on consultation services for foreigners and registered rent guarantee companies.
How to apply
- Check with your local government office or website to see if they offer rent subsidies or housing support programs.
- Receive the necessary documents at the counter.
- After submitting the documents, if approved, you will receive a specified amount of payment or support.
Company housing allowance
Probably the most likely benefit available to foreigners is the housing allowance provided by their employer.
A housing allowance is a benefit primarily provided by employers to help employees with the costs of housing.
Unlike national or local government rent subsidy programs, there are no requirements such as reduced income or unemployment. Payment is made according to company regulations.
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- Foreign employees are also paid according to company regulations.
- The amount and conditions for payment vary from company to company.
- Housing allowances may be subject to taxation as part of your salary. Please check with your company.
How to apply
- When joining the company or being assigned to a department, confirm with the company (HR department) whether or not a housing allowance is provided, the amount of the allowance, and any necessary documents.
- Gather the necessary documents and submit them to the company.
- If the payment is approved, the housing allowance will be deposited along with your salary.
Support programs for international students
Universities and other institutions have programs in place to provide rented accommodation for international students or to subsidize part of the costs associated with moving in.
A prime example is the "International Student Housing Rental Support Program" implemented by JASSO (Japan Student Services Organization). The purpose of this program is to ensure that international students can find accommodation even at schools that lack sufficient student dormitories.
Target audience
- International students receiving scholarships
- International students who came to Japan under the agreement
- International students staying with host families, etc.
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- Not all international students are eligible; there may be conditions such as academic performance and income requirements.
How to apply
- Contact the school's international exchange office or student support office to inquire about available support programs.
- Gather the necessary documents and submit them to the school.
- Interviews and assessments will be conducted as needed.
- If payment is approved, follow the contract procedures.
Support from NPOs and private organizations
Various support systems are available, including housing consultations, short-term accommodation assistance, support with lease agreements, and introductions to rent guarantee companies that cater to foreigners.
If you are not comfortable with Japanese, there are contact points and organizations that provide support in cooperation with guarantee companies, so please start by gathering information from the Immigration Services Agency's Life Support Portal, etc.
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- There are systems in place specifically for foreigners.
- Rather than providing rent subsidies, the focus is on providing a consultation service.
- They can provide information about rent subsidy programs offered by the national and local governments.
*Reference: Foreign Resident Support Portal Site "Housing" | Immigration Services Agency
Designated high-quality rental housing (Tokuyuchin)
Designated high-quality rental housing is a system that provides high-quality rental housing at a lower price than the general market rate, targeting middle-income earners.
Instead of subsidizing rent, local governments certify high-quality rental housing built by private companies as "specified superior rental housing," allowing residents to live there at a reduced rent.
Target audience
- Households with a certain level of income (unlike public housing for low-income individuals, this is targeted at middle-income households)
- Foreigners are also eligible.
- Local governments have established criteria such as "household," "age," and "income standards."
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- Since the program targets middle-income households, households with excessively high or low incomes are often excluded.
- While foreigners are also eligible, there may be requirements regarding their period of stay.
- In many cases, a joint guarantor located in Japan is required.
How to apply
- Check the official website or newsletter of your city or town for recruitment information.
- Gather the necessary documents and submit them to the local government office.
- If there are many applicants, a selection process or lottery will be held.
- If you pass the selection process, you will sign a lease agreement.
3.Conditions for foreigners to receive rent subsidies | Residence status, income, and documents
The following are some points that foreigners should pay particular attention to when using the rent subsidy program.
Residence status, period of stay, employment status
Eligibility for benefits may depend on factors such as the validity period of your residence card and whether you are permitted to work (whether you are permitted to engage in activities outside your permitted status).
Most subsidies are not available for short-term stays or tourist visas. Please check with your local government or support organization in advance to see if foreigners are eligible to apply.
Requirements regarding income, household structure, and place of residence.
Many programs have requirements such as household income being below a certain amount, and residency or resident registration within the city.
For example, the government's "Housing Security Benefit" has clearly defined income and employment status criteria.
Documents to submit
Common documents include a residence card, a copy of your passport, proof of income (pay stubs, tax certificates, etc.), an employment contract (if applicable), a lease agreement, and a certificate of residence.
4.Model Case: An example of rent subsidy received by a foreigner.
So, under what circumstances can foreigners actually utilize the rent subsidy program? Let's look at a few examples.
Cases where companies provided housing allowances or company-leased housing.
Foreign engineers hired by major manufacturers receive a monthly housing allowance of 30,000 yen. Since the actual rent was 70,000 yen, the individual's out-of-pocket expense was only 40,000 yen, allowing them to have more financial leeway in their living expenses.
This also provides significant support for foreign employees, allowing them to establish a stable life with peace of mind.
Another foreign engineer hired by an IT company was provided with company-leased housing. Of the 80,000 yen rent, the employee only had to pay 20,000 yen, with the company covering the rest. Company-leased housing has the advantage of significantly lowering the hurdles that foreigners often face, such as "finding a guarantor" and "the difficulty of contract procedures," so it is a system that should be actively utilized.
Cases where rent subsidies were received from the local government.
A foreign household whose income had drastically decreased due to unemployment applied for the "Housing Security Benefit," and payments began one month later.
The payment is generally for three months, and can be extended up to nine months with an application, so you will be expected to get your life back on track during that time. Specifically, you will need to submit a plan for job hunting and improving your household finances.
Examples of international students who utilized student support programs.
Universities provided rented accommodation for international students, with JASSO (Japan Student Services Organization) subsidizing part of the contract costs. This allowed international students to move in at a low cost, but since the application conditions differ each year, it is essential to obtain information from the school's office.
5.FAQ
Can I apply even if my current residence status is short-term?
A: Most programs require a certain period of stay. Short-term visas, such as tourist visas, are not covered by these programs.
When does the rent subsidy start and end?
A: It depends on the program. For example, the "Housing Security Benefit" has a limit of 3 months in principle, with an extension of up to 9 months. Be sure to check the duration for each local government and program.
Under what circumstances will subsidies be discontinued?
A: If you no longer meet the eligibility requirements for receiving the subsidy, it will be terminated. For example, this could be due to an increase in income, a change in employment status, or false declarations. Many programs require reporting while receiving benefits.
Can foreigners receive housing allowances?
A: Housing allowances are available to foreign employees if they meet the requirements. Being a foreigner does not disqualify them from receiving it.
What is the difference between welfare benefits and rent subsidies?
A: There are differences between public assistance and rent subsidies in terms of purpose, eligibility, and scope of payment.
| item | welfare | Rent subsidy |
| the purpose | Minimum guarantees to maintain a standard of living. | To alleviate the burden of housing costs and support stable living conditions. |
| Target audience | People whose income and assets are below a certain level and who are having difficulty making ends meet (foreigners are also eligible under certain conditions) | Company employees, civil servants, unemployed individuals, international students, etc. (Eligibility varies depending on the program) |
| Scope of payment | Support for all aspects of daily life, including food, utilities, rent, and medical expenses. | Rent only (Housing assistance benefits are for the unemployed or those in financial difficulty, while housing allowances are for employed individuals) |
| How to apply | Apply at your local municipal welfare office. | Depending on the system, you can go through the local government office, your workplace, your school, etc. |
| Repayment obligation | Basically no repayment required | Generally, repayment is not required (however, scholarship-type support does require repayment). |
| conditions | Asset and income investigations are conducted, as are investigations into employment and support obligations. | This varies depending on the system, including your workplace, school enrollment status, and income requirements. |
Foreign nationals can also be eligible for welfare benefits if they meet certain conditions. However, those conditions are very strict.
How long does it take from applying to receiving the subsidy?
A: It varies depending on the system. For example, with the national housing assistance benefit, it takes about two weeks from application to payment. In the case of company housing allowances, it is generally paid together with the salary in the month following the month in which the application is approved, according to the company's pay cycle. If there are any deficiencies in the application or documents, it may take even longer.
