Calculate housing benefit: order of the three factors

The Housing Benefit Act contains a formula that links countable rent and countable income with coefficients that depend on household size. Before it can apply, three preliminary questions must be answered. If one is missing, there is no award – regardless of how high the Frankfurt rent looks.

What the factors mean for the result is gathered on the Amount page. Here the order and a qualitative picture without a set amount are set out.

First it is settled who counts as household members. The coefficients and the maximum depend on that. One more person changes both sides of the calculation: more room for rent, often more added-up income.

Anyone who is excluded – for example because of Bürgergeld with housing costs – does not belong in the same calculation mass. That must be clarified before the formula, not after. See Eligibility.

All positive income of the household is related to the relevant period, usually twelve months or the award period. The flat-rate deductions under section 16 WoGG and the allowances come off that. The result is converted to a month.

Only this adjusted monthly figure is the “Y” of the formula, not the gross salary and not the account balance. The composition is explained under Income. Substantial assets stop the calculation beforehand.

What is to be used is the gross cold rent or the housing burden, in each case without heating, hot water, electricity or a parking space. This amount is capped at the maximum for level VI. The basic table is under Maximum amounts.

The heating-cost and climate components are added to the capped basic amount. They enlarge the countable framework but do not replace an individual heating-cost statement. Explanation: Heating costs.

A two-person household in Frankfurt am Main pays 820 euros gross cold rent. The basic maximum for level VI for two people is 745 euros; 75 euros of the cold rent stay uncounted. The heating-cost and climate components raise the countable overall framework in addition, not inside the 745 euros.

Income comes from part-time work subject to social insurance. After the deductions for tax and social insurance and without a further allowance there is a mid-range adjusted monthly income, no transfer benefit, no substantial assets. Whether the formula then produces a subsidy, and of what amount, is set only by the authority. This page deliberately names no euro amount as an alleged result.

The calculation presupposes a claim that exists in principle. Exclusions for Bürgergeld or BAföG in principle cannot be “offset”. A very high rent also does not cure a missing entitlement to apply.

A rent subsidy and an owner subsidy use the same formula; only which housing costs enter in step 3 differs. See Rent subsidy and Owner subsidy.

The binding calculation stands in the decision notice of the Housing Office (Amt für Wohnungswesen), Adickesallee 67–69, 60322 Frankfurt am Main. The basis is the figures evidenced in the application. Estimates without documents do not carry the formula.

After twelve months, at most 24 months, the calculation is done again: renewal. Changes in between can trigger a recalculation. Terms are collected in the Glossary.