Accommodation Supplement
Updated 2026 MSD rates. The Accommodation Supplement is a weekly payment from Work and Income to help with your housing costs — whether you rent, board, or have a mortgage. It is available to people on a benefit or on a low income.
Eligibility
You may qualify if:
- You are on a main benefit or have a low income (including working families).
- You pay rent, board, or have a mortgage on your home.
- You live in New Zealand and are a citizen or permanent resident.
- Your accommodation costs are more than the entry threshold for your area.
- Your cash assets are below the limit ($8,100 for a single person with or without children, or $16,200 for a couple).
Maximum Weekly Rates by Area (April 2026)
New Zealand is divided into four areas, with Area 1 having the highest housing costs:
| Area | Single, no children | Sole parent, 1 child | Sole parent, 2+ children | Couple, no children | Couple with children |
|---|---|---|---|---|---|
| Area 1 — Central Auckland, inner Wellington, Queenstown | $165 | $235 | $305 | $235 | $305 |
| Area 2 — Rest of Auckland, Wellington, Hamilton, Tauranga, Christchurch | $105 | $155 | $220 | $155 | $220 |
| Area 3 — Other cities and large towns | $80 | $105 | $160 | $105 | $160 |
| Area 4 — Provincial areas, small towns, rural | $70 | $80 | $120 | $80 | $120 |
Note: The amount you actually receive depends on your income, accommodation costs, and family situation. It is not automatically the maximum rate.
Entry Thresholds
Your rent, board, or mortgage payments must be above these thresholds before the Accommodation Supplement kicks in:
- Area 1: $103 per week (single) or $138 per week (couple/family).
- Area 2: $86 per week (single) or $115 per week (couple/family).
- Area 3: $69 per week (single) or $92 per week (couple/family).
- Area 4: $52 per week (single) or $69 per week (couple/family).
How Much You Get
The supplement covers 70% of your eligible housing costs above the entry threshold, up to the maximum rate for your area. It is not taxable and does not count as income for other benefits.
How to Apply
If you are already on a main benefit, the Accommodation Supplement is usually assessed when you apply for your benefit. You can also apply as a non-beneficiary (low-income worker) through MyMSD or by visiting a Work and Income service centre.
How the Supplement Is Calculated
The Accommodation Supplement covers 70% of your eligible housing costs above the entry threshold, up to the maximum for your area and family type. A worked example: a single person in Area 1 with rent of $300 per week pays the first $103 (the Area 1 entry threshold); 70% of the remaining $197 is $137.90 — but the Area 1 single maximum is $165, so the payment would be capped at $137.90. The same person with rent of $380 would hit the $165 cap.
Two limits therefore interact: the entry threshold (below which you get nothing) and the area maximum (above which you get no more). Both are checked against your income — the supplement abates as your income rises, and there are income cut-out points above which you receive nothing at all.
Key Considerations for 2026
- Cash asset limit: $8,100 for a single person, $16,200 for a couple or sole parent (excluding your home, car, and some other assets).
- Who can apply: you do not need to be on a benefit — working people on low incomes can apply directly as non-beneficiaries.
- Public housing tenants are excluded — Kāinga Ora and community-housing tenants cannot receive the Accommodation Supplement for that tenancy.
- 2027 changes: Budget 2026 announced increases to maximum rates of $10–$30 per week across all areas, effective 1 April 2027 — expect the figures above to rise then.
Application Tips
- Apply through MyMSD; beneficiaries get it assessed with their main benefit, but non-beneficiaries must apply separately.
- Provide proof of your accommodation costs (tenancy agreement, rent receipts, mortgage statement).
- Recheck your entitlement when your rent changes — the supplement is not automatically updated for rent increases in all cases.
- Note that the Accommodation Supplement is not taxed and does not count as income for other benefits.
Deep dive — 2026 update
Worked calculation: 70% of the excess
The formula has three moving parts: your entry threshold (the rent you must pay before the supplement starts), your income (which reduces the payment), and the Area maximum (which caps it). A sole parent with two children renting at $650 a week in Area 1 is the standard example:
| Step | Amount |
|---|---|
| Rent | $650.00 |
| Less entry threshold (Sole Parent Support, rent/board) | −$168.00 |
| Excess rent | $482.00 |
| 70% of the excess | $337.40 |
| Area 1 maximum for a sole parent with 2+ children | $305.00 |
| Accommodation Supplement payable | $305.00 |
Note the cap: the formula would pay $337.40, but the Area 1 maximum for that household is $305 — so $32.40 of theoretically eligible rent produces nothing. That is why moving one suburb can matter more than negotiating $30 off the rent if the move crosses an area boundary.
The four Area bands and who is in them
- Area 1 — central and metropolitan Auckland: the highest maximums ($165 single; $305 couple or sole parent with children).
- Area 2 — outer Auckland, Wellington, Queenstown Lakes and other high-cost centres: about two-thirds of Area 1.
- Area 3 — Hamilton, Tauranga, Christchurch, Nelson and similar: roughly half of Area 1.
- Area 4 — the rest of New Zealand: the lowest maximums ($70 single; $120 couple with children).
Asset limits and how income reduces the payment
The cash asset limit is $8,100 for a single person and $16,200 for a couple or sole parent — a hard cut-off, not a taper. On the income side, the supplement is reduced by 25 cents for every dollar of income above a threshold that depends on your benefit and household type, which is why two neighbours with identical rent can receive different amounts.
Accommodation Supplement is not taxed, does not affect your other payments, and is granted from the date you first contact Work and Income — provided the application is completed within 20 working days. Call first, then gather the evidence.