Loc'Avantages: Loc1, Loc2, Loc3 and rent discount

Loc1, Loc2, and Loc3 are the three rent levels of Loc'Avantages. Loc1 (intermediate rental) sets a rent 15% below market rents. Loc2 (social rental) sets it 30% below market rent. Loc3 (very low-income rental) sets it 45% below market rent. The greater the discount, the higher the tax reduction rate: from 15% to 65% depending on the level and the use of rental intermediation.

This page deals with rent levels, ceiling calculations, and rates. It does not cover the agreement process with the French National Housing Agency (Anah), rent ceiling amounts per municipality, or the relevant box numbers on the declaration form.

The three levels in one table

The BOFiP sets the same discount of 15, 30 or 45 %, and speaks of intermediate, social and very social rent.

The reduction is calculated on the amount of gross income from the subsidized housing.

Where does the rent cap come from?

The discount does not apply to a rent you choose. It applies to a rent ceiling set for each municipality, by arrondissement in Paris, Lyon, and Marseille. This ceiling is a monthly rent per square meter, excluding charges. It is estimated using data from the local rent observatory, if one exists, and otherwise based on the rent map. In the latter case, a flat rate of €1.30/m² is deducted for charges.

Rent ceilings are set annually on January 1st. For leases signed, renewed, or extended in 2024 and subsequent even-numbered years, the BOFiP (Official Bulletin of Public Finances) provides for a new estimate of market rents. For 2025 and subsequent odd-numbered years, the ceilings are updated based on the estimate of the rent reference index (IRL) for the second quarter of the year preceding the reference year.

The BOFiP (Official Bulletin of Public Finances) does not publish a table of ceilings per municipality, only examples. You should verify the ceiling for your municipality with the tax authorities.

The surface area coefficient

The ceiling per square meter is then multiplied by a coefficient that depends on the surface area: 0.7 + 19 / S. The BOFiP defines S as the surface area of the dwelling expressed in square meters of living space. The result is rounded to the nearest hundredth and cannot exceed 1.2.

The BOFiP applies this mechanism in an example in Laon: an intermediate ceiling of €7.28/m², for a 2024 lease on 29 m², gives a maximum monthly rent of €253.34 excluding charges.

To determine the rent ceiling, the BOFiP (French Official Tax Bulletin) uses the living area plus half the area of any annexes, up to a maximum of 8 m² per dwelling. Parking spaces and garages are not included. This page does not specify whether this increased area replaces S in the coefficient formula: the table above and the example below assume S is equal to the living area, excluding annexes. This point should be verified with the tax authorities.

The ceiling is assessed at the conclusion, renewal and resumption of the lease.

What the level changes for the tenant

The tenant must be an individual other than yourself, a member of your tax household, an ascendant, or a descendant, unless that person already occupied the property. The property is rented unfurnished, as a primary residence, and occupied for at least eight months per year.

The reference tax income used is that of the year before last, prior to the signing of the lease. The previous year is accepted if it is more favorable. An increase in income during the lease term does not invalidate the benefit, provided the condition was met at the time of signing.

For leases signed or renewed in 2026, the BOFiP (French Public Finances Bulletin) provides these annual income ceilings in metropolitan France:

For the intermediate level, the BOFiP (Official Bulletin of Public Finances) refers to the Pinel income limits, which are not reproduced here. Income limits for households with dependents and for overseas territories also exist, but are not detailed.

Rental intermediation and bonus

For Loc2 and Loc3, a bonus is available for using a rental intermediary: €1,000 for rentals or subletting, and €2,000 for a management mandate. This bonus is increased by €1,000 if the property size is 40 m² or less. Loc3 is only available through rental intermediation.

Numerical example (fictitious profile)

Situation. Nadia owns a 63 m² apartment. For the sake of illustration, we assume that the reference rent ceiling for her municipality, before any discount, is €14.00/m² excluding charges, and that S is 63 m² (living area, excluding annexes). These values are hypothetical: the official municipal ceiling must be verified. The surface area coefficient for 63 m² is 1.00.

Issue. What is the maximum rent for each level, and what is the annual tax reduction, assuming a constant rent?

Strategy. Apply the discounts of 15, 30 and 45 % to the reference ceiling, then the rates from the table above to the annual rents.

Result.

In this example, the waived annual rent is €1,587.60 (Rental 1), €3,175.20 (Rental 2), and €4,762.80 (Rental 3). The annual reduction ranges from €1,349.46 to €3,783.78 depending on the level of support and the use of a rental intermediary. The two amounts are presented side-by-side, without offsetting each other.

This comparison stops before taxes due on rental income, before the brokerage fee, and before the actual cost of the brokerage. It also assumes that the tax payable is high enough to offset the reduction. It illustrates the mechanism and does not predict your specific situation. Nadia is a fictional profile.

What changes depending on your situation

• The rent ceiling in your municipality, which determines the actual rent for each level.
• The surface area of your accommodation, by the coefficient of 0.7 + 19 / S.
• The use or not of rental intermediation, which changes the rate and opens the bonus for Loc2 and Loc3.
• The amount of your income tax. The tax reduction is applied to income tax according to the progressive tax scale. Any unused portion cannot be carried forward to subsequent years or refunded.
• The overall cap on tax benefits. The discount falls within its scope. This page does not specify this limit.
• Your tenant's profile, with regard to the income ceilings.

The rule depends on your situation. No results are guaranteed.

Respect the ceiling throughout the convention

The owner commits to renting the property for at least six years, under an agreement signed with the French National Housing Agency (Anah). Exceeding the rent ceiling during the commitment period is one of the reasons for revoking the tax reduction. In this case, the tax due for the year of the event is increased by the full amount of the reduction obtained. The recapture can take place no later than December 31st of the third year following the event.

The application for the agreement must be registered between March 1, 2022 and December 31, 2027, according to economie.gouv.fr (page written on 08/26/2026).