An increase of 5.9% - £3.09 on an average weekly rent from April 6 - will be discussed by city councillors on Monday (January 26).
Housing convener Councillor George Regan said: "Rent charges are calculated in September each year using a basket of indices that produced an inflation rate of 6% with a rent increase of £3.66 week being the equivalent of inflation plus 1%.
"This would have meant an increase of 7% which gave me cause for concern and we also received representations on this figure from the Dundee Federation of Tenants' Associations, who were among those consulted on any rent-rise proposal."
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Cllr Regan said the new, lower figure follows very constructive discussions with the federation and a further review of expenditure to bring about a revised budget. The proposed rent rise will protect the investment programme for the next financial year and we want a target of an even lower rise of 3% for 2010-2011.
"The council works closely with the federation on a range of housing issues and their views help us shape policies to deliver services to council tenants throughout the city," he added.
Councillor Regan said the majority of council house tenants in Dundee were eligible for Housing Benefit and the rent increase for them would be covered through the benefit system.
"But we are aware that any rise, particularly in the current economic climate, has an effect on those who do have to pay and that has been taken into consideration by proposing this lower increase."
Councillor Regan concluded: "The council is committed to carrying out a massive improvement programme on our homes to meet the Scottish Housing Quality Standard by 2015 and the income from rents is a vital factor in being able to deliver the improvements we are carrying out on our housing stock across the city."
(GK/JM)
