Investment to build new and affordable council homes while continuing to maintain the existing stock will need to be supported by a modest rent increase, Powys County Council has said.
The authority is currently finalising its housing business plans to ensure that they are viable and sustainable.
As part of its plans, a council house rent increase of 3.1% is being considered.
The increase, which equates to an average of £2.55 per week, is necessary to fund the service, as well as allow the council to continue with its maintenance investment plans for its existing 5,446 council houses, the authority said.
The proposed rent increase will also help fund the council's investment programme of providing 250 new homes by 2025, a scheme the local authority is planning to increase.
Powys County Council said council owned homes remain among the most affordable in the county, citing that the proposed increase in rents is below the December rate of inflation of 5.1%.
Commenting, Powys County Council’s Cabinet Member responsible for Housing Service, Councillor Myfanwy Alexander said:
"We have done all we could to keep this rise as reasonable as possible, but some rise is unavoidable because it is vital that we have the funds to invest in our housing stock, which directly benefits our tenants."
Powys County Council’s Cabinet will consider the proposed rent increase at a meeting on Tuesday 8 February.