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What do ARA, a needs assessment and private wealth limitation mean?

When you are looking for a rental apartment, you will run into new, unfamiliar terms. As these terms are not commonly used, we will explain them to you. The terms are related to a system which is used to support more affordable housing through ARA subsidies.

1) What is ARA?

ARA, i.e. the Housing Finance and Development Centre of Finland, is an agency under the Ministry of the Environment responsible for implementing state housing policy. Since March 1, 2025, ARA operates as part of Varke – the State Centre for Supported Housing Finance, which oversees the financing and supervision of state-subsidized housing.

ARA enables the construction and renovation of affordable ARA rental apartments through loans and guarantees. The rents of ARA apartments are regulated, whereas market rents are typically higher and set by private owners. Residents of ARA apartments also have more opportunities to influence their living environment.

When selecting tenants for ARA apartments, the following factors are considered:

  • urgency of the housing need,

  • income and wealth of the applicant,

  • municipal-specific limits for income and wealth.

The aim is to ensure that the apartments are comfortable and suitable for a diverse range of residents, including students, singles, couples, pensioners, and families with children. Some ARA apartments are reserved for specific groups, for example, people aged 55 and over.

Learn more about the rental apartments and apply a new home!

2) The needs assessment guides the M2-Kodit residential selection

 

The residential selection for M2-Kodit’s apartments, similarly as for all the ARA apartments, is made on the basis of the need assessment. The needs assessment refers to all the issues which define how strong the applicant’s need is to get an ARA apartment.

 

In other words, it refers to the criteria used to offer apartments to applicants. Homeless people and applicants who are under the threat of losing their apartment are prioritised. Applicants are not put on the waiting list on the basis of the filing date of application, but the most suitable applicant is selected when an apartment becomes vacant.

Learn more about M2-Kodit needs assessment when selecting residents.

 

3) Income and private wealth limitations are important criteria

ARA rental apartments are intended for people in need, so tenants must meet certain income and private wealth limitations.

  • Private wealth includes, for example, ownership of real estate, forests, and shares. You can check your own wealth information from the Tax Administration’s annual tax decision or via the omavero.fi service. To determine the value (i.e., the current market price) of your owner-occupied apartment or property, you can consult a real estate agent or review recent selling prices in your area.

  • Income limitations define the maximum income a household can have to qualify for an ARA apartment. These limits vary by municipality, household size, and year.

The amount of the private wealth limitations also varies by year and municipality. In addition, the number of people moving into the ARA rental apartment affects the limitation—the more people, the higher the combined allowed wealth.

Since March 1, 2025, ARA operates as part of Varke – the State Centre for Supported Housing Finance, which continues to set and supervise these criteria for state-subsidized housing.

Are you interested? Rear more about private wealth limitations.

Do you have questions about the other rental housing terms? Read more about a security, credit note and tenant obligations.