Cllr Devon Watson says the new policy is needed to support residents
The income threshold for access to social housing has increased by £3,500.
Single residents with no children earning below £34,500 are now eligible to apply for a public sector house.
For joint applicants with three or more children the maximum is £50,500.
Tynwald approved the proposals which were brought forward by the Department of Infrastructure at its June sitting.
Douglas Councillor Devon Watson welcomed the increase but warned it'll likely put more pressure on already stretched waitlists:
Infrastructure Minister Chris Thomas said: "This is one of a number of steps being taken to develop affordable housing options for people across the Isle of Man.
'The change will make public sector housing an option for more people who may currently be struggling to afford accommodation in the private rental market.
‘While the criteria are being raised, it is important to be clear that the number of public sector properties available will not immediately increase.
'It is therefore likely some waiting lists will grow if there is an influx of newly-eligible applicants following the changes until more public sector houses become available for occupation."
More information about public sector housing can be found on the government website.
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