Immigration New Zealand (INZ) published the accommodation cost framework and guidance on 28 January 2026. The rent caps below are now in effect. INZ’s current guidance says weekly rent caps of NZD $150 to $211 apply for all RSE accommodation. INZ has also announced a wider package of RSE changes (28 July 2026) and simpler accommodation standards, expected in the second half of 2027.
Since April 2026, a redesigned accommodation cost framework has applied to RSE worker accommodation in New Zealand, reshaping how employers calculate, charge, and recover accommodation costs. This approach establishes clear rent caps, transparent quality-based criteria, and strict compliance obligations, ensuring fairness for workers while providing certainty for employers.
A Standardised Approach to RSE Worker Accommodation Costs
The updated system introduces a nationally consistent methodology for determining accommodation charges under the RSE scheme. Instead of variable or unclear pricing practices, accommodation costs will be governed by weekly rent caps directly linked to measurable quality standards.
Under this framework:
- Weekly rent caps will range between NZD $150 and NZD $211
- The applicable cap will depend on objective accommodation features
- Employers may recover only the actual cost of providing accommodation
- All charges must be reasonable, lawful, and fully transparent
This system is designed to remove ambiguity while supporting better housing outcomes for seasonal workers.
Weekly Rent Caps Based on Accommodation Quality
Accommodation charges will no longer be arbitrary. Each property will be assessed against defined criteria that determine the maximum allowable weekly rent.
Key Factors Influencing Rent Caps
The rent cap applicable to each accommodation will be determined by:
- Number of occupants per bedroom
- Age and condition of the building
- Bathroom type and proximity
- Private vs shared facilities
- Direct or indirect access to bathrooms from bedrooms
Higher-quality accommodation with improved privacy, modern facilities, and better layouts will qualify for higher rent caps, while lower-spec accommodation will be limited to the lower end of the scale.
What the Rent Caps Cover
INZ’s guidance says the weekly rent caps cover the rent as well as all running costs. They do not include food costs.
Minimum Standards Still Apply
Rent caps do not replace the minimum accommodation standards. INZ’s guidance says that if a property does not meet all minimum standards for RSE accommodation, it cannot be used at all, no matter the rent price.
Encouraging Investment in Higher-Quality Worker Housing
This quality-linked pricing model is intentionally structured to incentivise employer investment in improved accommodation standards.
By allowing higher rent caps for higher-quality housing, the framework:
- Rewards employers who upgrade or build compliant accommodation
- Promotes healthier, safer living environments
- Aligns accommodation costs with real value and quality
- Supports workforce wellbeing and retention
The outcome is a sustainable housing ecosystem within the RSE scheme rather than short-term cost recovery practices.
Legal Compliance Remains Mandatory
Despite the introduction of rent caps, employment law obligations remain unchanged. Employers must continue to comply fully with:
- Minimum Wage Act
- Wages Protection Act
- All applicable employment and payroll deduction laws
Accommodation deductions must never reduce a worker’s pay below lawful thresholds, and employers remain responsible for ensuring deductions are lawful, consented to, and correctly documented.
Actual Cost Recovery Only
Employers will be permitted to recover only the genuine cost of providing accommodation. Profit-making through accommodation charges is not permitted under the RSE framework.
Recoverable costs may include:
- Rent or mortgage-related accommodation expenses
- Maintenance and compliance-related costs
- Utilities directly associated with accommodation provision
All recovered amounts must be reasonable, defensible, and auditable if requested by authorities.
Transparent Assessment Criteria for Predictability
Accommodation quality will be assessed using clearly defined and published criteria, offering predictability for employers and clarity for workers.
This transparency ensures:
- Workers understand what they are paying for
- Employers can plan accommodation investments confidently
- Disputes related to accommodation costs are minimised
- Compliance audits are streamlined and objective
Annual Rent Cap Adjustments for Inflation
To maintain fairness over time, rent caps will be updated annually. These adjustments will reflect inflationary changes, ensuring accommodation providers are not disadvantaged by rising costs while maintaining worker affordability.
Part of a Broader RSE Policy Strengthening Strategy
These accommodation cost reforms are part of the Government’s ongoing work to strengthen the RSE scheme. The 2026 policy review has since produced a package of changes announced on 28 July 2026. It includes a clear list of costs employers can recover from workers, a standard cost recovery agreement, and a requirement for internet access at worker accommodation. The changes will be introduced in stages from early 2027.
What Comes Next: Simpler Accommodation Standards
Rent caps are only one side of RSE accommodation. On 13 October 2026, INZ announced that 47 existing accommodation standards will be replaced by 15 core standards, expected to take effect in the second half of 2027. They include minimum bedroom space (6 m² for one person, 10 m² for two, 14 m² for three, 20 m² for four, and another 5 m² for each additional person) and Healthy Homes Standards applied as far as practicable. A transition period will apply.
Bedroom sharing is also one of the factors behind the rent caps, so employers should plan for both together. See our full guide to RSE accommodation standards.
Implementation Timeline and Guidance
- 28 January 2026: INZ published the framework and detailed guidance on its “Providing accommodation for RSE workers” page.
- April 2026: The framework applies to ATR applications lodged with the RSE Processing Team from this month.
- 28 July 2026: The Government announced a wider package of RSE changes, to be introduced in stages from early 2027. Current settings remain in place until then.
- 13 October 2026: INZ announced simpler accommodation standards, expected in the second half of 2027, with a transition period.
- Every year: Rent caps are updated to keep up with inflation.
Employers will have sufficient lead time to assess current accommodation, make upgrades if required, and align internal policies with the new rules.
A Predictable and Fair Future for RSE Accommodation
This reformed accommodation cost framework delivers clarity, consistency, and accountability across the RSE scheme. By linking rent caps to measurable quality standards, enforcing lawful cost recovery, and maintaining strong worker protections, the system supports both ethical employment practices and industry sustainability.
Employers who check their accommodation against both the rent cap criteria and the upcoming standards now will be better placed to stay compliant and keep their housing costs defensible.
How Immigration Chambers Can Assist
At Immigration Chambers, we help RSE employers and migrant workers clearly understand and comply with the new accommodation cost framework. We provide guidance on lawful accommodation deductions, employer obligations under the RSE scheme, and upcoming policy changes to reduce compliance risks.
Get in touch with our Immigration Lawyer Auckland today for expert advice on RSE employer compliance, accommodation rules, and seasonal worker visa obligations in New Zealand.
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FAQs
1. What are the new RSE accommodation rules starting in 2026?
From April 2026, accommodation charges for RSE workers will be capped based on housing quality, with clear standards and annual inflation adjustments.
2. How much rent can employers charge RSE workers?
Weekly rent caps will range from NZD $150 to $211, depending on accommodation quality and features.
3. Can employers make a profit from RSE accommodation?
No. Employers can only recover the actual cost of providing accommodation, and all charges must be reasonable.
4. Do these changes affect minimum wage obligations?
No. Employers must still comply with the Minimum Wage Act and Wages Protection Act, ensuring deductions are lawful.
5. How will accommodation quality be assessed?
Housing will be assessed using clear criteria such as bedroom sharing, building age, and bathroom access.
6. Do the rent caps apply to every RSE employer?
INZ’s current guidance says weekly rent caps now apply for all RSE accommodation. Check the guidance page for how they apply to your ATRs.
7. Are RSE accommodation standards changing too?
Yes. INZ has announced that 47 standards will be replaced by 15, expected in the second half of 2027, with a transition period.
8. Will RSE accommodation need internet access?
INZ’s 28 July 2026 announcement says enhanced pastoral care requirements will require internet access at worker accommodation. The changes are staged from early 2027.