Minister for Housing Darragh O'Brien has given approval in principle for the first Cost Rental Homes in Ireland, allowing tenants to pay rent that only covers the costs of delivering, managing and maintaining the properties.
Under the plan, three Approved Housing Bodies - Clúid, Respond and Tuath - are scheduled to deliver a total of 390 cost rental homes across Dublin, the greater Dublin area and Cork.
An additional 50 cost rental homes are also due to be completed later this year.
Minister O'Brien said in a statement: "These homes will be made available to middle income households with a reduction of at least 25% on open market rental values. It is my firm commitment that we build on this new scheme and expand it further."
However, Sinn Féin's Housing spokesperson Eoin Ó Broin said that while any cost rental homes must be welcomed, the less than 400 homes announced by the Minister go nowhere near to tackle the current need.
Mr Ó Broin said the Government's ambition was "far too low" and must be increased urgently to assist thousands of median income renters.