Income and asset limits for special housing aid raised
Reykjavík City has raised the income and asset limits for special housing aid provided to individuals and families. The City Executive Council approved these changes earlier this month, and both apply retroactively from Jan. 1, 2026.
Special housing aid provides financial assistance to families and individuals in the rental market who need help with rent payments beyond standard housing benefits.
To qualify for special housing aid, applicants must meet certain requirements, which are available on Reykjavík City's website. The website also features a dedicated "questions and answers" page where people can find answers to common questions about special housing aid.
The current income limit increase stems from changes to the housing benefits regulation, which raised the income thresholds for housing benefits by 5.20%. Income limits under Reykjavík City's rules were also increased by 5.20% to match these changes.
The new income limits are as follows:
The council also approved raising asset limits for special housing aid. After the change, combined assets of an applicant and other household members cannot exceed 8,499,000 króna, up from the previous limit of 8,079,000 króna.
As noted, this change is retroactive to Jan. 1, 2026. At the end of February, January payments were corrected and distributed. February payments reflected the increase described above.
Reykjavík City's total 2026 budget for special housing aid is 1.74 billion króna. The increase is expected to fall within the welfare department's existing budget authorization.