What is Wohngeld? — Simply Explained

Wohngeld is a government subsidy for housing costs. It helps lower-income households cover their rent or the costs of owner-occupied housing. Unlike a loan, Wohngeld does not need to be repaid — it is genuine financial relief.

What does Wohngeld mean?

The German word Wohngeld combines Wohnen (housing) and Geld (money) — literally "money for housing". It is a government subsidy towards your housing costs that you do not have to pay back. Its meaning is deliberately simple: people on lower incomes should be able to afford their home without having to rely on other welfare benefits.

Who Does Wohngeld Help?

Wohngeld is aimed at people whose income is sufficient for daily living expenses but not for the full housing costs. Typical Wohngeld recipients include:

• Pensioners with a small pension
• Families with low or middle income
• Single parents working part-time
• Employees with low wages
• Apprentices with their own apartment
• Students without BAföG eligibility
• People with disabilities who cannot work

History of Wohngeld

Wohngeld was introduced in 1965 in the Federal Republic of Germany and has been reformed several times since. It is governed by the Wohngeldgesetz (WoGG). The most recent major reform — the 2026 Wohngeld increase — has noticeably improved benefits and expanded the circle of eligible recipients. Implementation is the responsibility of the federal states; in North Rhine-Westphalia, the Ministry for Home Affairs, Municipal Affairs, Construction and Digitalisation is responsible.

The Two Types of Wohngeld

Rent Subsidy (Mietzuschuss)

The rent subsidy is the most common form of Wohngeld. It is available to tenants who have rented a flat or room. The subsidy is calculated based on the eligible gross cold rent — i.e. the net cold rent plus cold service charges. Heating costs are not covered by Wohngeld.

Cost Subsidy (Lastenzuschuss)

The cost subsidy is available to owners of self-occupied residential property — i.e. residents of their own condominium or house. It covers part of the ongoing costs: mortgage interest, property tax, maintenance costs and similar expenses.

How Does Wohngeld Differ from Other Benefits?

Wohngeld is often confused with other social benefits. The key distinctions:

• Wohngeld vs. Bürgergeld: Bürgergeld (formerly Hartz IV) covers the entire subsistence level — Wohngeld only covers housing costs. Anyone receiving Bürgergeld is not entitled to Wohngeld. → Detailed comparison
• Wohngeld vs. Basic Income Support: Basic income support in old age or for reduced earning capacity also excludes Wohngeld, as housing costs are already included in those benefits.
• Wohngeld vs. BAföG: BAföG recipients are generally excluded from Wohngeld — with few exceptions.
• Wohngeld vs. Child Supplement: Both benefits can be received simultaneously and do not exclude each other.

Legal Basis

Wohngeld is governed by the Wohngeldgesetz (WoGG) — last amended by the Wohngeld-Plus-Gesetz 2026. The law sets out who is entitled, how Wohngeld is calculated and what reporting obligations exist. The Wohngeld offices of cities and municipalities are responsible for implementation. In Düsseldorf, this is the Wohngeld Department (64/3) at Brinckmannstraße 5.