How housing benefit is calculated
The housing benefit (Wohngeld) calculation follows a formula set out in law. The core idea: housing benefit fills the gap between your rent and the part you can cover from your own income.
The formula
Wohngeld = 1,15 × (M − (a + b × M + c × Y) × Y)
In simplified form it reads: Wohngeld = 1,15 × (M − (a + b × M + c × Y) × Y). Here, M is the rent taken into account – at most the maximum amount for your rent level – and Y is your total monthly income. The coefficients a, b and c are set by law and depend on household size.
M: the rent taken into account
What counts is the gross rent excluding heating – that is, the net rent plus non-heating operating costs. It is only taken into account up to the rent level 6 maximum amount: anything above that does not increase the housing benefit.
Y: total income
Total income includes all income of the household members – salary, pension, unemployment benefit I and other earnings, with the statutory allowances.
a, b, c: the coefficients
The coefficients determine how strongly income reduces the subsidy. They are set out in the schedules to the Housing Benefit Act and are graduated by household size – which is why there is no simple rule-of-thumb figure, but binding tables that the housing benefit office applies.
The 1.15 factor
With the 2023 Wohngeld Plus reform, the formula gained the factor 1.15 – it noticeably increases the result and is part of the improved benefits since 2023.
What this means for you You do not have to work out the formula yourself: the housing benefit office determines your entitlement with binding effect. For a realistic estimate, your income, net rent and household size are enough – our worked examples show how the formula plays out in Hamburg.
Frequently asked questions
Do I have to work out the formula myself?
No. The housing benefit office calculates your entitlement with binding effect. The formula only helps you to get a rough idea of your entitlement.
What is the gross rent excluding heating?
The net rent plus non-heating operating costs – in other words, excluding heating and hot water. This figure feeds into the housing benefit calculation.
Why does my full rent sometimes not count?
Because only the rent up to the rent level 6 maximum amount is taken into account. The part above that does not increase the housing benefit.