Wohngeld is Germany's housing allowance — a government subsidy toward rent or mortgage costs for lower-income households. The 2023 Wohngeld-Plus reform significantly expanded eligibility, raising the number of qualifying households from roughly 600,000 to 1.9 million. Use our housing allowance calculator for a quick estimate, or read on for the full picture.
Who Qualifies for Wohngeld?
You may be eligible if you rent or own your home and your household income falls below the relevant threshold. Eligible groups include:
- Tenants paying rent for a flat or room
- Owner-occupiers (receiving a Lastenzuschuss — a load supplement)
- Residents of care homes
No entitlement exists if all household members already receive means-tested benefits that include housing costs — for example Bürgergeld (citizen's allowance), social assistance (Sozialhilfe), full BAföG grants, or basic pension supplements (Grundsicherung im Alter).
The 2023 Wohngeld-Plus Reform
From January 2023, major changes took effect:
- Climate component: a 10% top-up on the base allowance to offset energy costs
- Heating cost component: a flat monthly supplement toward heating bills
- Higher income ceilings: around 1.9 million households now qualify (up from ~600,000)
- Higher maximum rents: the recognised rent caps were substantially raised in all Mietstufen
Rent Levels (Mietstufen): What Do They Mean?
Germany divides every municipality into one of seven rent levels (Mietstufe I–VII). Higher Mietstufen reflect more expensive local rental markets and come with higher recognised rent caps. The Mietstufe is set per municipality, not per state.
| Mietstufe | Examples | Max. Rent (1 person) |
|---|---|---|
| I | Rural municipalities (e.g. Uckermark) | €404 |
| II | Small towns (e.g. Zwickau, Dessau) | €438 |
| III | Mid-size cities (e.g. Dortmund, Hanover) | €468 |
| IV | Large cities (e.g. Düsseldorf, Cologne) | €534 |
| V | Expensive cities (e.g. Frankfurt, Stuttgart) | €594 |
| VI | Very expensive (e.g. Hamburg, Berlin) | €658 |
| VII | Most expensive (e.g. Munich) | €748 |
Find your municipality's exact Mietstufe via the WoGV Annex or by contacting your local Wohnungsamt (housing office).
How Is Wohngeld Calculated?
The monthly allowance W is determined by the formula in §19 WoGG:
W = M − (a + b·M + c·Y) · Y
Where:
- M = recognised rent (actual rent, capped at the Mietstufe maximum)
- Y = recognised monthly income
- a, b, c = household-size coefficients (WoGG Annex 2)
| Household size | a | b | c |
|---|---|---|---|
| 1 person | 0.04 | 0.00079 | 0.00010 |
| 2 persons | 0.04 | 0.00053 | 0.00007 |
| 3 persons | 0.04 | 0.00042 | 0.00005 |
| 4 persons | 0.04 | 0.00036 | 0.00004 |
| 5 persons | 0.04 | 0.00030 | 0.00003 |
| 6+ persons | 0.04 | 0.00025 | 0.00002 |
Recognised Income
The recognised income Y is not simply your gross salary. Statutory deductions apply:
- 30% deduction for employees subject to social insurance contributions
- 10% deduction for pension recipients
- Additional deductions for children, disabled household members, and single parents
Our calculator uses a simplified 30% deduction from monthly gross income.
Worked Example
2-person household, gross income €1,500/month, rent €650, NRW (Mietstufe IV):
- Max rent (2 persons, MS IV) = €638 → recognised M = €638
- Recognised income Y = 1,500 × 0.70 = €1,050
- W = 638 − (0.04 + 0.00053 × 638 + 0.00007 × 1,050) × 1,050
- W ≈ 638 − 474 = €164 / month
How to Apply
Submit your application at the local Wohnungsamt (housing office) or Sozialamt (social welfare office). Typical documents required:
- Completed Wohngeld application form (W1, and W2 if applicable)
- Rental contract or landlord's rent confirmation
- Proof of income for the last 12 months (payslips, pension statements)
- ID documents for all household members
- Any existing benefit award letters
Wohngeld is typically approved for 12 months and must be reapplied for thereafter.
Wohngeld vs Bürgergeld — Which Is Better?
If you qualify for Bürgergeld or other means-tested benefits that already cover housing costs, a separate Wohngeld application adds no benefit. If you are just above the threshold for those benefits, Wohngeld can substantially reduce your housing burden. It is worth running the numbers on both.
Use our free housing allowance calculator to estimate your entitlement in seconds.