Concepts




Imputed rent


Imputed rent describes the benefit gained by the household compared with a corresponding household living in a rental dwelling with market rent. Imputed rent is formed also when people live in a dwelling owned by another household without payment, and when a rent lower than the market rent is paid for dwellings owned by municipalities and non-profit corporations. In the income distribution statistics, imputed rent is a separate income item outside the income concept, on which statistics are compiled as a memorandum item from the statistical reference year 2011 onwards. As an exception, a company accommodation based on employment relationship is considered wages and salaries according to the taxation data.

Imputed rent (or more precisely, imputed net rent) from housing is derived when the housing costs paid by the household for its dwelling (e.g. owner-occupiers' maintenance charges, insurance, maintenance costs) and interests on housing loans are deducted from the so-called imputed gross rent. The imputed net rent obtained as the result may be negative for households with housing loans because of interests on housing loans.
Imputed net rent is calculated as follows:

+ Gross rent (= market rent for a corresponding dwelling)
– housing costs (dwelling income possibly becoming negative at this stage is set to zero)
– possible interests on housing loans.

In the international recommendations on income distribution statistics, imputed rent is a separate income item as part of disposable income (Canberra Group: Handbook on Household Income Statistics, Second Edition 2011, United Nations). In practice, it is not, however, included in the income concept of international sources (Eurostat, OECD). In national accounts, imputed rent corresponds to households' operating surplus from which interests on housing loans are deducted as part of property income. It is counted as part of disposable income in national accounts. Imputed rent is not formed at all in the total statistics on income distribution.



Validity of the definition

  • Valid until (31 December 2078)
  • Dwelling income or imputed net rent describes the benefit gained by the household for the owner-occupied dwelling it lives in compared with a corresponding household living in a rental dwelling with market rent. Dwelling income from living in an owner-occupied dwelling is the difference obtained when deducting the housing costs paid by the household for its dwelling (e.g. maintenance charges, insurance, maintenance costs and interest on housing loan) from the so-called imputed gross rent. Dwelling income may become negative if the deduction items exceed the gross rent.

    In the income distribution statistics and the Household Budget Survey dwelling income obtained from an owner-occupied dwelling is included in property income, which together with wages and salaries and entrepreneurial income form factor income. Dwelling income from one's own dwelling is also included in disposable income.



    Validity of the definition

    • 1 January 2006 - 31 December 2012

    Source organisation

    • Tilastokeskus

    Related concepts

    Dwelling income or imputed net rent describes the benefit gained by the household for the owner-occupied dwelling it lives in compared with a corresponding household living in a rental dwelling with market rent. Dwelling income from living in an owner-occupied dwelling is the difference obtained when deducting value added and actual operating costs of the dwelling (e.g. interest on housing loan, insurance, maintenance charges and maintenance costs) from the so-called imputed gross rent. Dwelling income may become negative if the deduction items exceed the gross rent.

    In the income distribution statistics and the Household Budget Survey dwelling income obtained from an owner-occupied dwelling is included in property income, which together with wages and salaries and entrepreneurial income form factor income. Dwelling income from one's own dwelling is also included in disposable income.



    Validity of the definition

    • 1 January 1900 - 31 December 2005

    Source organisation

    • Tilastokeskus

    Related concepts

Source organisation

  • Tilastokeskus

Jaa