- By Nidhi Giri
- Wed, 09 Sep 2026 02:23 PM (IST)
- Source:JND
PMAY Urban 2.0 Affordable Rental Housing Scheme: As cities continue to expand, purchasing a house has become financially out of reach for many individuals. Renting has emerged as a more practical option for people who do not wish to make a long-term investment in a home. However, securing a reasonably priced rental property in urban areas remains a major challenge. The situation can be even more difficult for people who move to cities for education, employment, or better career opportunities. In this regard, Prime Minister Narendra Modi’s government has introduced a housing initiative aimed at making rental accommodation more accessible and affordable.
What Is PMAY Urban 2.0 Affordable Rental Scheme?
Affordable rental accommodation is one of the facilities covered under the Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0). Through its Affordable Rental Housing (ARH) component, the scheme seeks to offer reasonably priced homes to people living in urban areas.
The initiative is relevant for individuals who need temporary accommodation and may not have the financial capacity or intention to purchase a house.
What Does PMAY-U 2.0 Offer?
PMAY-U 2.0 is designed to support urban households that require a place to live but are unable to purchase or construct a permanent residence. The rental housing component focuses on providing safe, hygienic and affordable accommodation for people who may need housing for a limited period.
How Can You Benefit From The Scheme?
The Affordable Rental Housing initiative is intended to cover a wide range of people who need low-cost accommodation in urban centres. Beneficiaries include individuals belonging to Economically Weaker Sections (EWS) and Low-Income Groups (LIG), along with migrants and people without adequate housing.
The scheme can also benefit industrial workers, working women, rickshaw pullers, labourers, street vendors as well as small service providers. Contractual employees and other workers who move to cities for employment can also find rental housing support under the scheme.
The scheme will direct state and union territory governments to ensure the required infrastructure inside the residential blocks. Facilities such as portable water, septage systems, health centers, crèches and sanitation will have to be provided. Facilities for essential items like small shops can also be included in these complexes.
Implementation Of Scheme
PMAY-U 2.0 shall be established by two models, as per media reports. In the first model, public-private partnerships (PPPs) will be used to change vacant, government-built homes to rental housing. The second way would be to build rental housing by private or government organisations.