If you claim housing benefit or the universal credit housing element, the LHA rate sets the maximum you can receive towards your rent. The rate is based on the broad rental market area you live in and the size of property you're entitled to, which depends on your household composition.
The LHA rate is set at the 30th percentile of local rents, meaning roughly 30% of properties in your area should be affordable within the allowance. In practice, this means the LHA often doesn't cover the full rent, and you may need to make up the difference from your other income.
It's important to know the LHA rate for your area before committing to a tenancy, especially if benefits are a significant part of your income. Landlords can't refuse you because you receive benefits (that would be rental discrimination), but affordability is a legitimate consideration.
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