SOME Tweed Shire public housing residents are facing steep rental increases due to reforms by Housing NSW designed to boost the amount of housing stock across the State.

The State Government is scrapping a rental discount which reduced the market rent paid by nearly 10% of public housing tenants who were not eligible for a subsidy based on their income.

The means-testing will result in increases in weekly rents of affected public housing tenants of up to a few hundred dollars on par with similar private rentals in their area.

Minister for Family and Community Services Pru Goward said it would boost the fairness and availability of public housing to the 55,000 families on the waiting list.

"If a tenant is in a public housing property and ineligible for a subsidy from the Government, it is only fair they pay the proper market value, just as tenants in private rental properties have to," Ms Goward said.

"I understand some tenants may see a rent increase, but my priority is ensuring we are doing the best we can to offer public housing properties to those who really need it, and who don't have an alternative."

Tenants who cannot afford to pay their new market rent may be eligible for a rent subsidy.

Currently the wait for public housing at Tweed Heads is up to 10 years for a studio, one, two or three bedroom home and from two to five years for a four bedroom home.

At Murwillumbah the wait is between five to 10 plus years.