Germany housing allowance: asset limits and proposed benefit caps

In Germany, a family of four may remain eligible for housing allowance (Wohngeld) even if they possess up to 150,000 euros in liquid assets. This threshold is calculated by allocating 60,000 euros for the first household member and 30,000 euros for each of the three additional members, a standard defined by the Federal Ministry for Housing, Urban Development and Building as the limit for ‘significant assets.’

However, the German government is considering legislative changes that could impact future benefits. A draft proposal aims to introduce a cap on housing allowances starting January 1, 2027. Under this proposed rule, the allowance would be prohibited from exceeding the relevant rent or cost burden. While currently a special rule for households with more than twelve people, the new draft would extend this cap to all households, including individuals, couples, and families.