Loc'Avantages ANAH 2026: up to 65% tax reduction by renting affordably

Loc'Avantages offers a tax reduction of 15% to 65% of rents received in exchange for setting the rent below the local market rate and signing a convention with the ANAH (Agence Nationale de l'Habitat — the French national housing agency) for a minimum of 6 years. The lower the rent, the higher the reduction. In 2026, it is one of the most accessible tax incentives available to a landlord who already owns a property: no works are required under the standard convention pathway — just a convention to sign.

The principle: rent lower to pay less tax

The Loc'Avantages scheme (formerly known as the Loi Cosse) rests on a straightforward principle: you commit to letting your property below local market rents, and in return the state grants you a tax reduction on your rental income.

There are three levels of commitment:

Eligibility conditions

The property

• Any property let on a bare rental (location nue — unfurnished) basis, used as the tenant's primary residence
• Must meet minimum energy-efficiency standards — properties rated F or G under the DPE (energy performance certificate) are excluded from the scheme (a statutory requirement, with no exemption)
• Located in metropolitan France or in the overseas departments (DOM)

The landlord

• A natural person or an SCI subject to income tax (IR) rather than corporation tax (IS)
• Must sign a convention with the ANAH — it is this convention that creates entitlement to the reduction
• Minimum commitment period: 6 years
• May not let to a member of their own tax household or to a direct ascendant or descendant (under Loc1 and Loc2 without intermediation)

The tenant

• Income (reference taxable income for year N−2) must fall below the ANAH ceilings for the relevant zone and household composition
• The property must be used as the tenant's primary residence

Social letting intermediation

Social letting intermediation involves entrusting the management of the property to an Agence Immobilière Sociale (AIS — social letting agency) or an approved association. It is mandatory at the Loc3 level and optional at Loc1 and Loc2. It increases the reduction rate by 5 percentage points, unlocks ANAH bonuses, and frequently provides a rent guarantee.

Rent ceilings: a figure set commune by commune

Loc'Avantages rent ceilings are set commune by commune by the ANAH. There is no single national table applicable uniformly by zone — figures vary even within the same geographical area.

The only reliable source is the official ANAH simulator: monprojet.anah.gouv.fr — enter the address, floor area and chosen level to obtain the exact ceiling applicable to your property.

Raw data by commune is also available on data.gouv.fr.

The formula for calculating the rent ceiling is:

Worked example: 2-room flat of 50 m² (illustrative figures)

The figures below are provided for illustrative purposes only. The actual rent ceiling depends on the commune — always verify via the ANAH simulator.

Assumptions

• Floor area: 50 m²
• Estimated market rent: €850/month
• Level: Loc2 with intermediation → reduction rate: 40%
• Indicative Loc2 ceiling for the commune: €9.70/m² (to be verified on the ANAH simulator)
• Coefficient: 0.7 + (19/50) = 1.08
• Estimated rent ceiling: 50 × €9.70 × 1.08 = €524/month

Income and tax reduction

The reduction exceeds the gross tax liability → tax is eliminated entirely. Any surplus is not refundable — it is forfeited.

The real calculation to perform: compare the tax gain (reduction + ANAH bonus) against the rent discount accepted. In this example, the discount amounts to €326/month × 12 = €3,912/year in lost rental income. The tax reduction of €2,090 plus the ANAH bonus partially offset this loss. RentValo calculates this net balance automatically.

The ANAH bonus: an overlooked financial incentive

In addition to the tax reduction, the ANAH pays a cash bonus to landlords who choose Loc2 or Loc3 with social letting intermediation:

• €1,000 for any property under Loc2 or Loc3 with intermediation
• €2,000 if full management is delegated to the AIS
• +€1,000 additional if the property has a floor area of 40 m² or less

This bonus can be combined with the tax reduction.

Advantages and limitations

Arguments in favour

• Accessible without a new purchase: a landlord who already owns a property can bring it into the scheme
• Direct reduction against tax owed: more effective than a deduction from income, especially at a marginal tax rate (TMI) of 30% or 41%
• ANAH bonus stackable under Loc2/Loc3 with intermediation
• Letting security: social intermediation frequently guarantees rent payments and reduces the risk of arrears
• Flexible duration: 6-year commitment, renewable

Points worthy of attention

• Reduced rent: a discount of 30% to 45% can be significant depending on the local market — calculating the net gain is essential before committing
• ANAH convention required: an administrative process that must be planned in advance (processing times vary by local office)
• Reduction is non-refundable: if it exceeds the tax owed, the surplus is forfeited
• Energy standards: a highly energy-inefficient property may require prior works
• Intermediation mandatory at Loc3: involves delegating management to an approved body

How to sign an ANAH convention

1. Check the property's eligibility and the applicable ceiling via the ANAH simulator (monprojet.anah.gouv.fr)
2. Choose the level (Loc1, Loc2 or Loc3) and whether to opt for intermediation
3. Submit a convention application on the ANAH portal
4. Sign the convention — it specifies the rent ceiling and the commitment period
5. Find an eligible tenant (income within the required thresholds) and sign the tenancy agreement
6. Declare the reduction on the income tax return — form 2042-RICI (Tax Reductions and Credits)

FAQ

In summary

• Direct tax reduction of 15% to 65% of rents received, depending on the level and whether intermediation is used
• Three levels: Loc1 (−15% rent), Loc2 (−30%), Loc3 (−45% — intermediation mandatory)
• ANAH convention to be signed, minimum 6-year commitment
• Rent ceilings set commune by commune: verification via the ANAH simulator is mandatory before signing the tenancy agreement
• ANAH bonus of up to €3,000, stackable under Loc2/Loc3 with intermediation
• Accessible without a new purchase: any landlord who already owns a property can benefit