Faroe Islands proposes 1,500 krona monthly rent subsidy

A new bill introduced in the Faroese parliament would cap rent subsidies at 1,500 krona per month, Kringvarp Føroya reports. If approved, the measure would take effect on 1 September.

The proposal, presented on Wednesday, follows a public consultation period before the parliamentary elections. Under the plan, renters could receive up to 20 percent of their monthly rent reimbursed from public funds, with a maximum subsidy of 1,500 krona.

The subsidy primarily targets low-income households. Single adults earning up to 350,000 krona annually would qualify for the full amount, with the benefit phasing out as income rises. For single-person households, the subsidy disappears entirely at an annual income of 638,000 krona. Two-adult households with combined earnings below 500,000 krona would also receive the full subsidy, which cuts off at 788,000 krona.

Applicants must not own property that could serve as housing. The subsidy would not affect eligibility for other social benefits and would be tax-exempt.

The bill, introduced by Social Affairs Minister Margit Stórá, was reviewed by 18 different stakeholders. The Pensioners’ Association argued for doubling the maximum subsidy to 3,000 krona, while the Employers’ Association called for lower income thresholds to better target those in need. The national bank suggested excluding individuals with significant financial assets.

If passed in its first reading on Friday, the subsidy would be administered by the public housing agency, with costs estimated at 17 million krona annually if 1,200 households each received an average 1,000-krona monthly subsidy.