Ramsey Town Commissioners will suggest a 2.5 per cent increase in public sector rents.
The Commission currently operates 553 homes – but has a deficit of over £1.12 million.
This equates to around £2,038 per house per year which is met by a government grant.
Members were concerned that a zero increase could result in larger percentages being applied in future years, and felt that regular small inflationary increases were easier for tenants to manage than the larger uplifts which have been experienced in the past.
A 2.5 per cent increase equates to an additional average weekly rent of approximately £2.60 for a three bedroom house.
The resolution was passed by eight votes to three, newly elected Commissioner Nigel Howard, together with Bill Hankin and Alby Oldham voting against.
A final decision on the public sector rent increase will be made by the Department of Infrastructure who have sought the views of housing authorities.