Finding a decent rental home in a major city remains one of the biggest challenges for migrants, students, daily wage workers, and low-income families. Rising rents often force people to live in overcrowded rooms or accommodation with limited facilities, making urban life more expensive and stressful.

To address this issue, the Government of India launched the Affordable Rental Housing Complexes (ARHC) scheme, a housing initiative aimed at providing quality rental accommodation at affordable rates to economically weaker sections and migrant workers living in urban areas.

If you have moved away from your hometown for work, education, or employment opportunities and are struggling with high rental costs, here's everything you need to know about the ARHC scheme.

What Is the ARHC Scheme?

Affordable Rental Housing Complexes (ARHC) is a government-backed housing initiative launched in July 2020 under the Pradhan Mantri Awas Yojana Urban framework.

The scheme was introduced after the COVID-19 pandemic highlighted the housing challenges faced by migrant workers and low-income families in cities. Many workers were forced to return to their hometowns due to the lack of affordable accommodation in urban areas.

The primary objective of the scheme is to provide safe, hygienic, and affordable rental housing near workplaces for people who cannot afford expensive city rentals.

Who Can Benefit From the Scheme?

The ARHC scheme primarily targets individuals belonging to:

• Economically Weaker Section (EWS)
• Low Income Group (LIG)

Potential beneficiaries include:

• Migrant workers
• Daily wage laborers
• Street vendors
• Rickshaw pullers
• Domestic workers
• Factory workers
• Industrial laborers
• Students
• Service sector employees
• Workers relocating for employment

Additionally, beneficiaries of PMAY-U who are working in a different city and do not own a PMAY house in that location may also be eligible under applicable guidelines.

How Does the Scheme Work?

The ARHC initiative operates through two implementation models.

Model 1: Conversion of Existing Vacant Housing

Under this model, government-funded housing units that remain vacant are converted into affordable rental homes.

Private agencies or concessionaires renovate, manage, and maintain these properties before renting them to eligible beneficiaries.

This approach helps utilize existing housing stock while increasing rental availability.

Model 2: Construction of New Rental Housing

Under the second model, government agencies, public bodies, or private entities develop new rental housing complexes on available land.

These newly built housing units are then offered to eligible tenants at affordable rental rates.

The goal is to expand the supply of rental accommodation in cities experiencing high housing demand.

How Is Rent Determined?

Rental rates vary depending on the project model.

For Existing Converted Housing

The rent is generally determined by local authorities after conducting market assessments and considering affordability factors.

For Newly Constructed Housing

The agency developing the housing project may determine rental charges within the applicable regulatory framework.

The scheme also includes safeguards against excessive rent increases.

According to the guidelines:

• Rent revisions may occur every two years.
• A single revision cannot exceed 8%.
• Total rent escalation over five years cannot exceed 20%.

These provisions help ensure that housing remains affordable for low-income tenants.

Documents Required

Applicants are typically required to provide:

• Aadhaar Card
• Government-issued identity proof
• Address details
• Employment-related information (where applicable)

Additional documentation may be requested depending on the specific housing project.

Priority Categories

While all eligible EWS and LIG applicants can apply, preference may be given to certain groups, including:

• Scheduled Castes (SC)
• Scheduled Tribes (ST)
• Other Backward Classes (OBC)
• Widowed women
• Working women
• Persons with disabilities
• Minority communities
• Transgender individuals

Priority is generally subject to eligibility and housing availability.

How to Apply

Interested applicants can visit the official ARHC portal to explore available projects and application details.

Official Portal:

https://arhc.mohua.gov.in

The portal provides information about:

• Available housing projects
• Eligibility criteria
• Rental terms
• Project locations
• Application procedures

Applicants can review housing options and follow the instructions provided by the concerned implementing agency.

Why the ARHC Scheme Matters

Urban housing costs continue to rise in many Indian cities, making affordable accommodation increasingly difficult to find for low-income workers and migrants. The ARHC scheme seeks to bridge this gap by creating a structured rental housing ecosystem that offers better living conditions at reasonable costs.

By providing affordable homes close to workplaces and educational institutions, the initiative helps reduce commuting expenses, improve living standards, and support economic mobility.

Final Takeaway

The Affordable Rental Housing Complexes (ARHC) scheme is designed to provide quality rental housing to migrant workers, students, daily wage earners, and economically weaker families struggling with high urban rents. Through a combination of converted housing units and newly developed rental complexes, the program aims to make city living more affordable and accessible.

For individuals searching for a safe and budget-friendly rental home, the ARHC scheme could be a valuable housing option worth exploring.