In this paper we estimate the tenant benefits in public rental housing supplied by local government on the basis of the data for private housing as well as public housing. In the estimation we specify a Cobb-Douglas utility function defined by housing attributes and other goods, and present a new estimation form of Hicks equivalent variation taking into account implicit marginal prices of public housing. Our work recognizes that the unit cost of housing is different between private and public housings, which is not identified by previous studies. The proposed procedure in this paper requires the estimation of implicit marginal prices of public housing attributes and private housing attributes. We further analyze the relationship between benefits of public housing and subsidy for rent, defined as the difference between the
market value of public housing and rent of public housing, and examine the distribution ofthe benefits by household characteristics. This study finds that the calculated benefits from the public housing were 10.0 percent of monthly income, and evidence that benefits are related to income. Our results provide the effectiveness of public rental housing for the lower income households.