How is the tiered rental subsidy for social housing in Taipei City calculated?

I'm really busy, and unless I have to respond to something, I don't have time to write a full and serious article. However, there are still many media or student interviews asking how the "15% discount + tiered rent subsidy" for social housing in Taipei is calculated, so I will explain it while the blanket is drying.

It's often a bit complicated to say verbally, but it's actually quite simple:

1. First, subtract the tiered rental subsidy in the attached picture from the original price.

Note that the "original price" here does not refer to the most expensive price on the social housing rental page. That price is already the "price after 15% off"; so to estimate the original price, divide it by 0.85.

2. If the subsidy is 15% cheaper than the original price, the subsidized amount will be used; if the subsidy is more expensive than the original price, the 15% discount will be used.

3. Adjust the price of the tiered subsidy to erase the fraction. Basically to avoid disputes, the Beishi government's approach will only make up more, not less.

For example, let's take the three-bedroom 40500 Minglun house that everyone is most familiar with. We first divide him by 0.85 to get the original price of about 47647. 47647-11000=36647, after erasing the fraction, the first-order subsidy you see is 36,000, so it is actually 11647, which is more than 600 yuan.

This also explains why, in theory, the third-tier subsidy for the three-room type of Minglun social house should have a subsidy of 3,000 or 5,000, but they still rent 40,500 like the unsubsidized households: because according to the second point above, 47647 no matter whether it is reduced 3000 or 5000 is higher than 40500, which is a 15% discount, so it is calculated as 40500.

Therefore, don’t have the misunderstanding that “social housing can also apply for rent subsidy separately”. The price list you see on the rental website is already the final rent after deducting the subsidy. After being able to live in a social housing, the disadvantaged will get a rent supplement. It is a social housing in Hong Kong, not a social housing in Taiwan. Thank you.

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Basically, the same subsidy amount and logic are used in all social houses in Taipei City. If you are interested, you can calculate it yourself.

Of course, this algorithm also has its inherent problems. That is, as the "original price" rises, the 15% discount will become more advantageous, resulting in the substantial gap between the subsidy of each level (and the subsidy of each room type) will be narrowed.

For example, it is the same subsidy model. The difference between the highest and the lowest rental price of the three-room house in Minglun is only 4500 (40500-36000); but the difference between the highest and the lowest rent of the three-room house in Dongming is 7600 (21500-13900). This also caused the rent-to-income ratio of Minglun Community House to rise seriously with the type of housing.

But does Dongming’s social housing subsidize more? There is no oh on the account, and it is even slightly less than Ming Lun. Run the above formula again, 21500/0.85=25294 (original price), then 25294-13900=11394. It is also slightly less than Minglun's 11647.

Why is this happening? As mentioned earlier, this is the problem with this algorithm.