Rents are to increase from July 1 for the 91 community housing units owned by the Waitaki District Council.
The 4% increase equates to an average of $5 a week, still keeping rentals well below market values.
Property manager Dougall McIntyre said yesterday this was the first review of rentals since they were increased in September, 2008, and was in-line with keeping rentals between 27% and 30% of the pension.
Before the review, rentals were about 23% of the pension.
That will see the base rental increase from $78 to $83 a week, still well below market rentals, although some tenants pay more if they have extra facilities, such as two bedrooms or double units.
The council has 66 community housing units in Oamaru, 22 in Palmerston and three in Hampden.
It is investigating building new units, using money from the sale of its Clare St complex, the first community housing built in Oamaru.
Preference is given to tenants who are over 60 years, can care for themselves and meet asset and income requirements.
However, some of the units in Palmerston are rented to tenants outside those requirements and they pay full market rental.
Mr McIntyre said all the units were occupied, with waiting lists for Oamaru and Hampden.
Age Concern acts as a liaison between the council and tenants, visiting units each quarter.
