However, the increase is well short of what would be needed for the portfolio to comply with the Dunedin City Council’s own policy, as the service is overly subsidised by rates.
The revenue and financing policy says the portfolio should cover 90% of its costs, but the rent rise brings the proportion up to just 78% — meaning 22% will be covered by rates.
The 8% rental increase was included in draft budgets for the council’s 2026-27 annual plan and these were discussed by councillors last week.
This will follow rent rises of 11% and 3.5% in the past two years across more than 900 units.
Sawyers Bay community housing tenant Janice Turei said residents were already dealing with power price hikes and they no longer felt secure.
They had been told to expect rent rises every year.
"I’m just nervous because I can imagine in another five or six years I won’t be able to live there any more," she said.
"And there are no other options — social housing is it, really. After that, it’s the street, I guess."
Mrs Turei, 75, said she was a widow and had lived in an old broken-down bus for two years while she was on a waiting list for a council flat.
She moved into the unit three years ago.
Rents should not increase by more than the rate of inflation, she said.
"My message to the council would be — rather than taking money off the most vulnerable and the poorest people, they need to bring new money into the city," Mrs Turei said.
"They should be working out ways to bring in money, not just continually taking it off the ratepayers and now the poorest in the city."
Another Sawyers Bay tenant, Jessica Denton, described herself as a refugee from the Christchurch earthquakes.
She had lived in a bedroom in an old hotel in South Dunedin and said it took a long time for a suitable place to become available.
Ms Denton, 68, said she had been at the council flat for about a year.
"The worry of not being able to pay bills and the rent going up and up is terrifying," she said.
"What’s my next stop? Being in the Oval with those people in a tent if I can’t afford to pay rent?
"I’m really worried, and so are a lot of people. I mean, we’re all frugal as hell."
Ms Denton said she was no longer able to walk far.
"It would be good if the council considered the fact that they really are dealing with vulnerable, disabled, elderly on the whole — people that need support and should have support."
Crs Mandy Mayhem, Christine Garey, Marie Laufiso and Benedict Ong voted against the fees and charges for the city properties group. The vote was carried 8-4.
Cr Mayhem said in a cost-of-living crisis the council had an obligation to look after the most vulnerable people in the city.
"And I will not continually punish the poor," she said.
Cr Russell Lund said market rents were at least double what community housing tenants paid.
"We are providing good-quality accommodation, well maintained, at a level far, far below the market," he said.
"Yes, we want to look after our vulnerable, but we also want to look after our vulnerable ratepayers."
The council is to reconsider the parameters of its revenue and financing policy before the 2027-37 long-term plan.
