Rent for council tenants is on course to rise by more than 3%, according to Fife Council.
Councillors say the increase will help meet a target of building 2, 700 affordable new homes.
49% of people who responded to a tenants survey backed the move.
Councillor Judy Hamilton, Executive Spokesperson for Housing & Building Services said: "I am delighted to have the backing of Fife Council to take forward the £102million HRA budget for next year. The agreed rent increase will help us meet our target of 2,700 affordable new homes and continue improving the quality of our existing housing, making them warmer, drier and healthier. Fife is the highest investing local authority in Scotland and we’re very proud of that. We're committed to meeting the needs of this and future generations of tenants. Having the support of our tenants is critical to continuing with the improvement in housing services."
John Mills, Head of Housing confirmed his delight at the Council's support for the HRA budget: "Our tenants are at the heart of what we do, and what we aim to do in ensuring that the Housing Service strives to be the best in Scotland. The rent increase will help us to improve key services with greater tenants’ influence going forward."