Following a review ordered by Housing Minister Shane Rattenbury, tenants who previously paid a percentage of market rent rates as part of the Affordable Rental Scheme will now be eligible to have their rent recalculated based on their capacity to pay.

Housing ACT officials will assess tenants' suitability for six rental levels using criteria such as household income.

Announcing the changes on Wednesday, Mr Rattenbury said the levels would bring about additional flexibility for individuals when their personal or financial circumstances changed.

''A number of tenants contacted me raising concerns that they simply could not afford to pay rent under the previous model, which had rent set at 74.9 per cent of the market rate,'' Mr Rattenbury said.

''It was clear that the flat approach to rent did not suit the real-world situations that older tenants faced, with increasing costs of living and potential changes in personal circumstances often leaving tenants in difficult financial positions.''

The Affordable Rental Scheme was introduced in 2011 for eligible tenants aged 65 or over who were having difficulty sustaining their tenancies.

Some of the 34 social-housing tenants involved in the scheme include women who have experienced family or relationship breakdowns and have limited financial assets.

The government is yet to outline the cost of the changes as officials work with tenants to determine their new rental rates.

''The new approach to the scheme means that if a tenant's household income declines, so does the rent they are charged,'' Mr Rattenbury said.

''It's important that the schemes we have in place are responsive, targeted and effective.

''I believe the Affordable Rental Scheme ticks each of these boxes, and these changes will further enhance the lives of some of our older tenants.''

ACT Council of Social Service director Susan Helyar said rents would be more finely tuned to tenants' circumstances.

''This is a small number of tenants who will be affected initially, so we will be able to take a look to see if they've got the right settings, if six levels is right, and we'll be able to see what difference it makes to the tenants.

''It shows that the minister and the government have listened to advocacy and have looked at the evidence, and that they're prepared to try some new and different things to deal with the needs that are out there in our community.''

The changes were also welcomed by peak housing and homelessness body ACT Shelter, which launched a discussion paper on community housing in November.

The paper called for better protection for tenants who were unable to make ends meet despite subsidised rental arrangements.